By FX Empire.com
The pair continued its rise for the third straight session after Greek Prime Minister called for a referendum on the euro area’s latest bailout package.
The announcement by Papandreou ignited fears after the debt relief accord announced last week by European leaders which included that private sector bondholders will bare 50% losses of Greek debt to cut it by 100 billion euros, while leveraging the firepower of the EFSF to 1 trillion euros from the current 440 billion euros.
In the case of the rejection of the bailout, the debt-laden country would be vulnerable to a default.
Concerns aggravated in markets this week amid worries regarding the implementation of the measures announced by European leaders last week.
Moreover, fundamentals increased doubts regarding global recovery asChina’s PMI manufacturing showed an ease in expansion to 50.4 in October from 51.2.
By the same token, U.S .manufacturing sector growth slowed to 50.8 in October from 51.6.
The downbeat sentiment boosted the dollar against the franc that was damped has been damped by many investors as a safe harbor after the SNB several interventions.
On Wednesday, while the Swiss economy lacks fundamentals, the U.S will release important data. As of 11:00 GMT, MBA mortgage approvals for Oct. 28 will be available. At 12:15 GMT, the U.S economy is to release ADP employment change where it is expected to show an increase to 101,000 in Oct. from the previous 91,000. Thereafter, specifically at 16:30 GMT, eyes will be on FOMC rate decision which is expected to show no change as the Fed will probably leave borrowing cost at its low level of 0.25%.
The data will be awaited, especially ADP employment as it will provide some indication about the status of the labor sector before the release of the non-farm payrolls on Friday.
See what are the upcoming financial event on the FX Empire Forex Economic Calendar now.
