By FX Empire.com
The lack of data from Switzerland and the United States left the USD/CHF moving in line with the prevailing sentiment that remained skeptic over Europe’s ability to contain the crisis which in role boosted the dollar over other currencies.
Investors head to the dollar and especially as the SNB’s ready stance to intervene weakened swissy’s appeal as a safe haven. The volatility is evident and the market saw little relief in the political face change in Greece and Italy as the OECD warned of the risk that major economies will still weaken and will not be able to escape it and with Portugal reporting contraction in the third quarter and revised drop in second quarter growth the fear over the euro area extended further ahead of key GDP data from Europe on Tuesday.
We still see the sentiment and the pro-dollar market likely to prevail for the coming days amid clear jitters over Europe that will favor the dollar for gains over swissy.
The main focus on Tuesday will be on inflation data with the release of U.S. PPI at 13:30 GMT, where the annual reading excluding food and energy will rise to 2.9% from 2.5%, according to median forecasts. At the same time, retail sales less and empire manufacturing will be available.
Originally posted here
