By FX Empire.com
In the week ended October 14, the USD/CHF showed decline on hopes European officials will introduce decisive and comprehensive plan to combat the debt crisis which eroded demand on the dollar as a safe haven.
EU Commission President Jose Manuel Barroso outlined a roadmap to combat the crisis. Inspectors from the European Union, International Monetary Fund and European Central Bank, know as the troika, said Greece will probably get the next tranche of last year’s 110-aid package in early November. Slovakia ratified the expansion of the EFSF to make all euro-area economies able to use this strong tool, where the aforesaid provided hopes and confidence in markets.
Recently, the dollar became a favorite refuge amid the several interventions by the SNB to curb the franc’s appreciation while investors became wary of buying the franc as a safe harbor on possible rise in the franc’s cap against the euro.
This week, the main highlight will be on Swiss trade data, and inflation and housing as well as other important news from theUnited States.
Monday October 17:
While the Swiss economy lacks fundamentals, theU.S.will release empire manufacturing for October at 12:30 GMT, followed by industrial production and capacity utilization for September at 13:15 GMT.
Tuesday October 18:
The main focus will also be on inflation data with the release of PPI at 12:30 GMT, where the annual reading excluding food and energy will inch down to 2.4% in Sep. from 2.5% in Aug., according to median forecasts. On the other hand, Switzerlandhas no releases.
Wednesday October 19:
In a day full of fundamentals from the U.S., the start will be with MBA mortgage applications for October 14 which will be available at 11:00 GMT, followed by housing starts and building permits and CPI at 12:30 GMT. Housing starts, which will provide evidence about the status of the housing market that triggered the 2008 crisis, are expected to increase to 594,000 in September from 571,000 in August, while building permits will probably show a fall to 610,000 from the prior 620,000. On the other hand, CPI for the year ended September is predicted to rise to 2.1% from the preceding 2.0%. Thereafter, eyes will be on the Fed Beige book at 18:00 GMT.
Thursday October 20:
At 06:00 GMT, the Swiss economy will release its most important data for the week which is trade data for Aug. with exports and imports during the month. The data will be under scrutiny as the recent earnings reports showed that Swiss companies were negatively affected by the franc’s appreciation which forced the SNB to embark on several interventions to curb the franc’s runaway. As of 09:00 GMT, credit Suisse Zew survey (expectations) for the month of Octobe will be available.
For the U.S., initial jobless claims for the week ended Oct. 14 and continuing claims for the week ended Oct. 8 will be available at 12:30 GMT. Leading indicators and Philadelphia Fed will be out at 14:00 GMT. At the same time, existing home sales report is predicted to show 2.5% drop in Sep. from the prior 7.7% surge.
Friday October 21:
The week ends with the release of money supply M3 for the year ending Sep. at 07:00 GMT, while the U.S. has no releases.
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