The EUR/CHF pair retreated on Thursday after the Italian downbeat bond auction, where the weakening common currency supported the Swiss Franc to gain slightly. The euro declined on fearsItalywill not handle the mounting debt anymore especially after borrowing cost on long-term debts remained unsustainable.
Italy sold as much as 7.0 billion euros of bonds with different maturities, below the targeted quantity, where the nation saw borrowing costs remained relatively high and preferred not to meet the auction’s target.
We still expect thin trading on Friday with the low trading volumes, and especially when no major news are scheduled. The market movement is expected thin due to low volume and will be focused on the sentiment, especially when this week and this year are to end today.