Despite all the mixed news and the ongoing volatility across the board the EUR/CHF continued to move in a tight range and was not affected by the news that Greece might call off the referendum or the surprise cut from the ECB.
The pair clearly lacks momentum as the SNB remains the sole player for the pair and it is surely defending its set floor by strong arsenal.
On Friday the focus will continue to be on Greece and on the G20 in Cannes to see the next step for the nation, especially as news started to suggest Greece will call off the referendum once the opposition announced its support to the new bailout which accordingly will restore Greek funding and by that avoid default and a euro disaster.
Also the news for Switzerland will have a big effect on the market and increased reserves will surely signal how much the SNB is committed to fighting the franc’s appreciation which might be the trigger to the pair to move higher on expectations the SNB might move again.
Switzerland will end the week with the foreign currency reserves for October at 08:00 GMT after it rose to a record the previous month of 282.4 billion.
As for the euro area, the week will end with the final PMI Services for October at 09:00 GMT which is expected steady at 47.2 and the Composite PMI which is also expected to remain unrevised at 47.2.
The euro area September producer price index is due at 10:00 GMT and expected with 0.3% rise on the month after 0.2% drop and on the year to ease to 5.8% from 5.9%.
