While the Swiss economy lacks fundamentals, the U.S. will release new home sales for Oct. at 15:00 GMT with expectations referring to a drop to 310,000 from 313,000 a month earlier.
The data will be carefully watched as it will give an indication about the status of the housing sector which triggered the 2008 financial crisis. However, the main focus will remain the latest developments from the euro area amid talks between European leaders about solving the crisis.
Last week, UBS put the franc under pressure after it said “the Swiss economy slowed significantly in the second half of the year as the strong franc squeezed exporters’ profit margins,” while it predicts growth to slow further to 1% in the fourth quarter.
Still, there is mounting expectations the SNB would intervene to curb the franc’s appreciation.
This week, the main focus will be the infamous jobs report in the United States as well as housing, manufacturing and confidence data. On the flip side, the Swiss economy will release important data such as 3q GDP, retail sales and PMI manufacturing.
Nonetheless, more attention will be n Nov. 29 as euro area leaders will meet to discuss the latest developments and decide whether Greece is eligible for the next tranche of last year’s 110-billion euro aid package.
Originally posted here
