By FX Empire.com
The USD/CHF moved to the upside as the franc lost more grounds as the SNB president warned of the downside pressures on the recovery and that they are ready to count the franc’s gains.
The comments from the bank came as a preemptive signal to markets for another move by the bank and that sent the pair to the upside, especially as the dollar was already gaining grounds on instability in Europe.
Swiss National Bank President Philipp Hildebrand said that the bank is ready to take additional measures if the currency appreciates further or the economic status and deflation threats worsen.
The data indeed supported the comments with the CPI dropping 0.1% on the year in October and falling 0.5% in EU harmonized terms while unemployment moved higher to 2.9% from 2.8%.
We expect the volatility to remain dominant on Tuesday with the focus still on Europe and the developments in debt laden nations, Italy and Greece. The political instability in both nations is a source of agony and a sign to markets that Europe did not quell the crisis or contain it with the EU October measures. The focus is still on Italy’s vote on the budget amendments on Tuesday and the outlook for Berlusconi with rumors starting to rise over his possible resignation.
At 06:45 GMT, the Swiss economy will release the last data this week which is SECO consumer confidence for Oct, where the U.S. has no releases.
Originally posted here
