On Thursday trading, while Swiss economy lacks fundamentals, theU.S.will announce monthly budget statement at 19:00 GMT, where expectations refer to a narrow in deficit to $140.0 billion in Nov. from $150.0 billion a month earlier.
The pair is expected to follow the general sentiment in the market which will probably continue to track the latest developments in the euro area. With tensions in markets, the dollar is predicted to take the pair higher and vice versa.
Eyes will also be on the SNB and FOMC rate decisions to see the last monetary decision in 2011. Expectations are in favor of seeing a hold in monetary policy, yet the SNB is under pressure to intervene to halt price drop and boost the economy through depreciating the franc further, while the Fed may be estimated to announce more stimuli to spur the economy.
Last week, that Swiss consumer prices dropped 0.5% from a year earlier, marking the sharpest drop since Oct. 2009, while Finance Minister Eveline Widmer-Schlumpf said negative interest rates and capital controls “are issues which are being examined.”
With further intervention from the SNB, the Swiss franc is expected to be damped by investors, especially as it lost its merit as a safe haven for the dollar and yen.
Originally posted here
