On Wednesday, the U.S. dollar, yen and Swiss franc edged lower after a report released by the Guardian stating that Germany and France had reached an agreement regarding the expansion of the European Financial Stability Facility (EFSF) firepower to 2 trillions from the current 440 billion euros damped demand on refuges, yet the drop in the franc was higher causing the pair to rise.
However, German Finance Ministry spokesman said on Wednesday that there is no agreement betweenGermanyandFranceregarding boosting the EFSF.
Still, the main focus is on the euro area ahead of the awaited European Council meeting on October 23 to details of the anti-crisis plan.
On the other hand, Switzerland’s main trades union organization Tuesday urged the SNB and government to raise the ceiling of the euro against franc to 1.40 from the current 1.20 to avoid relapsing into recession, where it still believe that the franc is overvalued.
Moreover, data from the U.S. showed improvement as housing starts increased 15% in September from the prior 5.5% drop and median estimates of 3.3% surge.
On Thursday, at 06:00 GMT, the Swiss economy will release its most important data for the week which is trade data for Aug. with exports and imports during the month. The data will be under scrutiny as the recent earnings reports showed that Swiss companies were negatively affected by the franc’s appreciation which forced the SNB to embark on several interventions to curb the franc’s runaway. As of 09:00 GMT, credit Suisse Zew survey (expectations) for the month of October will be available.
For the U.S., initial jobless claims for the week ended Oct. 14 and continuing claims for the week ended Oct. 8 will be available at 12:30 GMT. Leading indicators and Philadelphia Fed will be out at 14:00 GMT. At the same time, existing home sales report is predicted to show 2.5% drop in Sep. from the prior 7.7% surge.
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