By FX Empire.com

The EUR/CHF fluctuated heavily last week with focus on the debt crisis and mixed expectations for further SNB interventions.

The pair still lacks major momentum and only moves strongly on SNB expectations, where the gains seen last week were backed by renewed expectations that the SNB will raise the EUR/CHF floor to 1.40 from 1.20 yet good trade figures again dampened the expectations.

The market will start the week with the EU summit in focus, hoping that the leaders present something strong and sustainable to contain the crisis.

Still the leaders that meet Sunday might not present to markets any final plans especially as Germany and France called for another meeting on Wednesday which according to them will be the latest set date for the measures to announce.

The leaders are in disarray over how to expand the firepower of the EFSF without undermining the fiscal health of the guaranteeing nations or the ECB as a financing source.

More volatility will be seen and we have two scenarios and two violent scenarios. One is a strong recovery if the market finds the measures strong to contain the crisis, and the other is a strong selloff is they did not find a suitable reaction to the crisis.

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

Other news from the euro area and the U.S. economy to affect the pair this week:

Monday October 24:

The data start on Monday with the advanced estimate for the sectors performance in October at 08:00 GMT. The PMI Services is expected to fall to 48.5 from 48.8 and the PMI Manufacturing is expected to fall to 48.2 from 48.5 and accordingly the Composite PMI is likely to weaken as well from September’s 49.1.

The Industrial New Orders for August are due at 09:00 GMT and expected to drop by 0.1% after 2.1% slump the previous month.

Tuesday October 25:

Germany will report the Gfk Consumer Confidence for November at 06:00 GMT which is expected to weaken to 5.1 from 5.2.

Wednesday October 26:

A pending euro summit on Wednesday that France and Germany called for will be of focus if the leaders did not announce the measures to contain the crisis on Sunday, where the decision might be delayed till Wednesday and accordingly the focus will still be on the euro area.

Thursday October 27:

The euro zone confidence figures for October are due at 09:00 GMT. The Business Climate Indicators is expected to weaken further to -0.15 from -0.06, the Economic Confidence is expected to drop to 94.1 from 95.0 while Industrial Confidence is expected to fall to -6.5 from -5.9 and the Services Confidence will decline to -1.3 from 0.0. Consumer Confidence is expected unrevised from the advanced estimate at -19.9.

Friday October 28:

Switzerland will end the week with the KOF Leading Indicators for October at 09:30 GMT which is expected to slow to 1.00 from 1.20.

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