On Wednesday, the USD/CHF fell on mounting speculations the Swiss National Bank will not adjust the franc’s ceiling against the euro.
Meanwhile, the Swiss franc is to some extent separated from factors affecting the market as the several interventions by the SNB made investors wary of buying it as a safe haven, where the pair is much affected by the dollar’s movements. Also, the improvement in the general sentiment has prompted investors to leave the dollar as a favorite refuge in the recent period. European Commission President Jose Barroso will unveil comprehensive plan on Wednesday which will include banks recapitulation, situation in Greece, the EFSF and private sector participation in bailouts to contain the European debt crisis.
Commissioner Oli Rehn said the debt crisis could be resolved, providing hopes there is utmost determination from European officials to solve the debt problem. Even after the rejection of the Slovak Parliament to the EFSF expansion, there are hopes that sooner or later the plan will be ratified. Slovak parties gathered on Wednesday to reach an early agreement to boost the EFSF. On Thursday, the Swiss economy releases the only data for the week, which is producer and import prices, at 07:15 GMT. At 12:30 GMT, the U.S economy will release trade balance report which is expected to show a widening deficit of $46.0 billion in August from $44.8 billion deficit a month earlier. At the same time, initial jobless claims for the week ended October 7 and continuing claims for the week ended October 1 will be available. The data is predicted to have an impact on the pair, yet the main focus remains on the euro area to see the latest developments of the European debt woes.
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