USD/CHF Forecast Dec. 27, 2011, Fundamental Analysis

On Monday trading, the markets are closed due to the year-end holidays. For Tuesday, as of 07:00 GMT, the Swiss economy will release UBS consumption Indicator for the month of Nov., yet the release is expected to have slight impact on the pair’s movements.

The U.S., on the other hand, will release S&P/caseShiller for the month of Oct., due at 14:00 GMT, which is predicted to record -0.20% from the prior -0.50%, followed by consumer confidence, available At 15:00 GMT, where analysts forecasts a  soar to 58.5 in Dec. from 56.0 a month earlier.

Eyes will track the latest data from the U.S. to see the progress of the economy as last week’s data provided hopes the U.S. economy will lead the recovery path in 2012 without the need of further stimuli from the Fed.

Thus, the pair is expected to be affected by the data, yet it may also follow the general trend in the market which is focusing on the latest developments in the euro region.

For the franc, last week there have been talks last week about further measures to curb the franc’s advance as a panel from the government and the central bank discussed measures such as capital controls and negative interest rates and even restrictions, including a possible ban, on foreigners buying Swiss real estate to halt the franc’s rally which negatively affected prices and exporters.

Therefore, the franc may be under some pressure on growing speculations policy makers will intervene again to push down the franc.