By FX Empire.com
The USD/CHF showed decline amid worries stemming from the euro area which triggered safety demand on the franc, where investors started to resort to it amid speculations there will be no further interventions from the SNB to curb the franc’s appreciation despite the ongoing calls of raising the euro cap against the franc to 1.40 from the current 1.20.
Last week, speculations increased that leaders of the largest two euro area economies are divided over the role played by the ECB and leveraging the EFSF, while German announcements referred that the coming European meeting will not be the final in solving the crisis.
In the same context, Moody’s downgraded Spain’s credit rating by two notches to A1 from Aa2 while Standard and Poor’s said “sovereign ratings on France, Spain, Italy, Ireland, and Portugal likely would be lowered by one or two notches.”
This week, the main focus will be on growth data from the United States amid the absence of important fundamentals from the Swiss economy.
The release of the data this week will be as follows:
Monday October 24:
Both economies lack economic fundamentals which propose that there would be calm trading on the pair which is predicted to follow the general trend in market as it will not able to get direction from data.
Tuesday October 25:
At 06:00 GMT, the Swiss economy will release UBS consumption indicator for Sep. Consumer confidence, in theU.S., due at 14:00 GMT, will rise to 46.0 in October from 45.4 a month before, according to median estimates.
Wednesday October 26:
U.S. MBA mortgage applications for August 19 will be released at 11:00 GMT, followed by durable goods orders, due at 12:30 GMT, which is projected to slide 0.7% in Sep. relative to the preceding 0.1% drop.
At 14:00 GMT, new home sales report for Sep. is expected to show 1.7% rise from the prior 2.3% fall.
Thursday October 27:
The main highlight of the week which is GDP annualized for the third quarter, which is predicted to record 2.3% from 1.3% growth in the second quarter, will be available at 12:30 GMT. At the same time, initial jobless claims for the week ended Oct. 22 and continuing claims for the week ending Oct. 15. Thereafter, specifically at 14:00 GMT, pending home sales will show 0.1% rise in Sep. from the previous 1.2% fall.
Friday October 28:
The week ends with the release KOF Swiss leading indicator at 09:30 GMT which is estimated to retreat to 1.00 in Oct. from 1.21 a month earlier, while in the U.S. personal income and spending will be under scrutiny at 12:30 GMT, followed by University of Michigan confidence will show a rise to 58.0 in Oct. from the prior 57.5.
Read more Weekly Forex Analysis here.
