By FX Empire.com
The week started with clear favors to the dollar amid mounting debt and growth woes that helped the USD/CHF maintain the upside bias.
The U.S. suppercommittee did not reach any agreement on cutting the debt and that means that the automatic spending cuts will come in action and might restrict the government’s efforts to stimulate growth amid the worsening outlook for the economy.
Further agony from Europe also weighed on the sentiment, especially after Moody’s warned France that the outlook might be worsening and it risks losing its top AAA rating.
The volatility remained evident and the M3 data from Switzerland did little to change the overview as it actually improved from the revised previous.
We still expect the choppy trading to continue on Tuesday with the eyes turning to the US GDP amid ongoing focus on any developments in Europe especially after Mario and Papademos head to Brussels to meet with EU officials.
At 06:00 GMT, the Swiss economy will release its most important data for the week which is trade data for Oct. with exports and imports during the month.
In theU.S., the main focus will be on the main highlight of the week which is GDP annualized for the third quarter (second reading), which is predicted to remain unrevised at 2.5%, where it will be available at 13:30 GMT. Thereafter, the concentration will shift to minutes of the FOMC meeting due at 19:00 GMT.
Originally posted here
