By FX Empire.com

The EUR/CHF ended another week nearly flat with choppy and tight ranged trading all week. The outlook for the pair remains uncertain and investors are waiting for clear signs from the SNB that they will move.

The euro is still trading with heavy volatility and uncertainty as the outlook for the next move from Europe is not clear and the future of the euro is still at risk with the deepening debt crisis.

This week our eyes will continue to be focused on the developments in Europe especially as the two new governments in Greece and Italy already won parliamentary support and now drafting the new spending and austerity measures.

Both leaders are expected to head for Brussels to talks with the EU leadership and that will be watched alongside expected meeting with the German and French leadership. We have more auctions this week and the market will continue to eye the debt market and borrowing costs after they surged this year and holding around the critical levels with Italy and Spain both seeing yields fluctuate around 7.0%.

The German GDP and the euro area PMI figures will be important. The November advanced PMI will indicate how worse the state of the economy is getting into the fourth quarter especially with the euro area seen contracting again.

More volatility is expected yet with the lack of any sign on SNB movement we can see the pair still likely to test 1.23-22 areas again with the intervention expectations losing momentum, yet eased worries over Europe’s future and SNB expectations will keep negate the downside bias.

Other news from the euro area and the Swiss economy to affect the pair this week:

Monday November 21:

The Swiss economy will start the day with the release money supply M3 for the year ending Oct. at 08:00 GMT.

The euro zone will start this week at 09:00 GMT with the current account figures for September, where the previous non-seasonally adjusted deficit was 6.3 billion euros, while the previous seasonally adjusted deficit was 5.0 billion euros.

Tuesday November 22:

At 06:00 GMT, the Swiss economy will release its most important data for the week which is trade data for Oct. with exports and imports during the month.

The euro zone will start the session at 15:00 GMT with the consumer confidence indicator for November in the advanced reading, where the indicator stood at -19.9 in the previous month.

Wednesday November 23:

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%.

Thursday November 24:

Germanywill start the session at 06:00 GMT with the GDP figures for the third quarter in a final reading, where the seasonally adjusted quarterly GDP is expected unchanged at 0.5%, while the working-day adjusted GDP index is expected at 2.6%. In addition, the domestic demand index for the third quarter is expected unchanged at 0.4%, while exports are expected to expand by 1.7% from 2.3%.

At 09:00 GMT Germany will release the IFO survey for November, where the business climate indicator could have retreated to 105.2 from 106.4, while the current assessment indicator could have declined to 115.2 from 116.7, in the time expectations indicator could ease to 96.0 from 97.0.

Friday November 25:

We do not have major data due for release on Friday and trading might be calm after the US holiday and early closing this week.

Originally posted here