By FXEmpire.com

EUR/CHF Fundamental Analysis April 11, 2012, Forecast
Analysis and Recommendations:
EUR/CHF is trading at 1.2014 just a tad over the SNB preset floor limit. The pair are trading at the bottom of today’s price range. The euro was trading higher earlier in the session at 1.2030, but as worries over the financial crisis in Spain and Italy taking front row center today, investors began moving to the safety of gold the greenback and the yen. The euro dropped against most of its trading partner.
Unemployment in Switzerland was released today and came it at 3.1% where it was forecast and where it has been holding. There is little in the way of economic support for the Franc or the Euro on the near horizon.
The euro should continue to fall against most of the major currencies, but with the SNB floor set at 1.20 there is not much room here. Last week the euro challenged the 1.20 price for just a quick touch, before the SNB intervened and they are currently on the lookout and well aware of the price levels.
Yields on Spanish and Italian government bond yields continued to rise on Tuesday as financial markets in Europe reopened after a four-day Easter break. Yields on 10-year Spanish government bonds jumped 9 basis points to 5.83%
Private equity in Europe remains in the doldrums as prolonged economic uncertainty and frozen credit markets keep dealmakers at bay, according to research released Tuesday. The first quarter saw just 157 deals worth a total EUR8.1 billion, which is a 50% fall in volume.
It may be a difficult task for the central bank as data and sentiment have turned negative.
Economic Data for April 10, 2012 actual v. forecast
GBP |
RICS House Price Balance |
-10% |
-12% |
-13% |
USD |
Fed Chairman Bernanke Speaks |
|||
AUD |
NAB Business Confidence |
3 |
1 |
|
CNY |
Chinese Trade Balance |
5.3B |
-1.3B |
-31.5B |
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
CHF |
Unemployment Rate |
3.1% |
3.1% |
3.1% |
DKK |
Danish CPI (YoY) |
2.70% |
2.70% |
2.80% |
JPY |
BoJ Press Conference |
|||
NOK |
Norwegian Core Inflation (MoM) |
0.40% |
0.30% |
0.70% |
NOK |
Norwegian CPI (MoM) |
-0.10% |
-0.10% |
1.00% |
Economic Events for April, 11, 2012
02:30 AUD Home Loans (MoM) -3.5% -1.2%
Home Loans record the change in the number of new loans granted for owner-occupied homes. It is a leading indicator of demand in the housing market.
13:15 CAD Housing Starts 200K 201K
Housing starts measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
13:30 USD Import Price Index (MoM) 0.8% 0.4%
The Import Price Index measures the change in the price of imported goods and services purchased domestically.
19:00 USD Federal Budget Balance -201.5B -232.0B
The Federal Budget Balance measures the difference in value between the federal government’s income and expenditure during the reported month. A positive number indicates a budget surplus; a negative number indicates a deficit.
Government Bond Auctions April 10-20, 2012
Apr 11 09:10 Italy BOT auction
Apr 11 09:30 Germany Eur 5.0bn new Jul 2022 Bund
Apr 11 09:10 Sweden Sek 5.0bn Jul 2012 & Sek 5.0bn Sep 2012 T-bills
Apr 11 09:30 Swiss Bond auction
Apr 11 09:30 UK Gbp 4.5bn 1.0% Sep 2017 Conventional Gilt
Apr 11 10:00 Norway Details T-bill auction on Apr 16
Apr 11 14:30 Sweden Details nominal bond auction on Apr 18
Apr 11 17:00 US Auctions 10Y Notes
Apr 12 09:10 Italy BTP/CCTeu auction
Apr 12 09:30 UK Gbp 2.0bn 4.25% Jun 2032 Conventional Gilt
Apr 12 15:00 US Announces auction of 5Y TIPS on Apr 19
Apr 12 17:00 US Auctions 30Y Bonds
Apr 13 10:00 Belgium OLO mini bond auction
Apr 16-30 n/a UK Re-opened 3.75% 2052 Conventional Gilt syndication
Apr 16 09:10 Slovakia Auctions floating rate Nov 2016 & 4.35% Oct 2025 & Bonds
Apr 16 09:10 Norway T-bill auction
Apr 17 08:30 Spain 12 & 18M T-bill auction
Apr 17 09:30 Belgium Auctions 3 & 12M T-bills
Apr 18 09:10 Sweden Nominal bond auction
Apr 18 09:30 Germany Eur 5.0bn 0.25% Mar 2014 Schatz
Apr 18 14:
Originally posted here