Choppy trading prevailed for the EUR/CHF on Monday with the focus still on the debate in the United States and the decision to raise the debt limit which dominated the markets.
The swissy also enjoyed the upper hand as debt woes are returning to haunt the euro gradually, with the slowing pace of recovery and rising uncertainty. The EU and IMF officials started their first review of Portugal’s bailout to assess their commitment to the terms in order to release the second tranche of loans.
We still see that swissy is favored for more gains amid the rising uncertainty and risk aversion, which is supporting haven currencies. The franc is trading at record highs versus the euro confirming that the debt relief is only temporary as haven demand on swissy remains evident.
On Tuesday, Switzerland will start the week with the annual Retail Sales index for June at 07:15 GMT after it slumped 4.1% in May.
Also at 07:30 GMT from Switzerland the PMI Manufacturing for July is expected with a drop to 52.8 from 53.4.
At 09:00 GMT the euro area June Producer Price Index is due and expected with 0.1% rise on the month following a drop of 0.2% and on the year to ease to 6.0% following 6.2%.