Amid the absence of data from the Swiss economy, the pair’s movements will probably depend on the US data due today. As of 14:00 GMT, the US will release existing home sales for the month of March, where expectations refer to 2.5% rise compared with the preceding 9.6% drop in February.
In the case of improvement in US data, the US dollar is predicted to uplift the pair to help the dollar to rebound after hitting a new fresh low versus the franc last week.
On Tuesday, the pair fell during the Asian session on the back of the downgrade by Standard & Poor’s to US government debt rating to “negative” from “stable,” but it rebounded with the advance of European equities after the progress in some European earnings and manufacturing data.
With the escalation of debt woes in Europe and the US along with the Fed’s holding of interest rate unchanged and increasing speculations that the SNB would raise borrowing cost in June, trailing the ECB, to protect Swiss exporters, where yesterday Novartis profit was affected by the franc’s appreciation, the outlook for the pair remains to the downside.
Written by ForexMansion.com