By FX Empire.com
The EUR/CHF moved to the upside mainly on Tuesday amid evident pressure on the franc versus the dollar and surely not to any strength for the euro which was losing grounds across the board.
In an unexpected move Papandreou called for a confidence vote on his policies which is expected this Friday and also called for a national referendum on the new bailout which is expected by the end of this year or in January which warnings for started to rise.
Fitch Ratings warned that a no vote will force Greece into a disorderly default and eventually might force it to drop out of the euro area. The EU leaders have gone out of their way to find a good package to restore confidence but eventually the unexpected decision in Greece reversed all the progress made and sent markets to expecting the worst.
Heavily volatility is still expected on Wednesday with the market now controlled by the dollar and risk aversion which is fueling the gains for greenback as a safe bet amid the ongoing uncertainty and rising risk.
Investors will also watch the comments from the Federal Reserve as the FOMC announces their monetary policy decision as they are expected to stay aside this month with no changes, yet after the turn of events in Europe now, investors look for any comfort comments and support to battered markets, especially after MF Global in the United States marked as the first official victim of the debt crisis.
The euro area final PMI Manufacturing for October is due at 09:00 GMT and expected unrevised at 47.3.
See what are the upcoming financial events on the FX Empire Forex Economic Calendar now.
