The EUR/CHF was marginally flat on Tuesday with the holiday mode still evident across major markets and many still out for the holidays. The thin trading
EUR/CHF Forecast Dec. 28, 2011, Fundamental AnalysisThe EUR/CHF was marginally flat on Tuesday with the holiday mode still evident across major markets and many still out for the holidays. The thin trading volumes kept the pair stable ahead of the Italian bond sale that is the highlight for Europe this week.
Investors are still cautious over the European outlook and the week for Europe will be centered on the Italian bond auction. On Wednesday investors will turn their attention to the Italian bond sale as the nation prepares to sell 9 billion euros of 179-day bills and up to 2.5 billion euros of zero 2013 bonds.
We still expect choppy trading on Wednesday with the low trading volumes yet violent moves might be seen if the auction was a surprise to the market as the low volume will be the reason for sharp movements.
Switzerland will lease the KOF Swiss Leading Indicators for December at 10:30 GMT and expected to fall to 0.20 from 0.35. As for the euro area the eyes will be on Italy that will be preparing to auction new bonds at 10:00 GMT.
