The EUR/CHF continues the tight ranged trading and was biased mainly to the downside since the beginning of the week with the ongoing euro crisis and needed correction as the pair is comfortable trading above 1.20 floor.
The pair’s movement is not connected to the euro news as much as to the sentiment and the weaker dollar gave the franc a boost to attempt to correct some of the recent losses after surging from around 1.22 areas towards 1.24 areas and with the expectations for the SNB to raise the floor to 1.25 losing momentum the pair has space to move south to test SNB waters, yet in a clearly cautious and tight ranged move.
We continue to monitor the developments from Switzerland and the euro area to see if there is any major change in the sentiment that might affect the outlook for the pair or help the euro recover some losses as otherwise the franc remains the winning bet.
Germany will start the session at 08:30 GMT with the PMI manufacturing and service for November in an advanced reading, where the PMI manufacturing is expected to decline further to 48.4 from 49.1, while the PMI services could have slipped to 50.0 from 50.6.
At 09:00 GMT the euro zone will join the session with the PMI Composite for November in an advanced reading, as the PMI composite is expected to contract further reaching 46.2 from 46.5, while the PMI manufacturing could have contracted further to 46.5 from 47.1, in the time the PMI service is expected lower at 46.0 from 46.4.
At 10:00 GMT the euro zone will provide the industrial new orders figures for September, where the non-seasonally adjusted annual index could have expanded by 8.0% from 6.2%, while the seasonally adjusted monthly index could have dropped by 2.6% from 1.9%.
Originally posted here
