While the Swiss economy lacks fundamentals, the U.S. economy will release initial jobless claims for the week ending July 23 and continuing claims for the week ending July 16 will be available at 12:30 GMT. At 14:00 GMT, pending home sales report is expected to show 2.0% drop in June relative to 8.2% rise recorded in May.
Still, the main highlight in the market is on the debt ceiling issue as concerns still persist that U.S. officials will not reach an agreement before the August 2 deadline which will make the world’s largest economy prone to downgrade by rating agencies as well as possible default on debt obligations due to expected climb in yields on treasury bills.
On Tuesday, U.S. President Obama warned that he will use the “veto” if the Congress approved Speaker John Boehner two-step plan to raise the debt ceiling and cut government expenditure by $3 trillion.
On Wednesday trading, investors resorted to safe havens, yet the Swiss franc showed advance over the dollar as U.S. debt limit problem vis-à-vis the stable economic conditions in Switzerland made the Swiss franc more attractive.
Regarding fundamentals, the franc was not much affected by the drop in Swiss leading indicator to 2.04 in July from 2.23 in June.
On the other hand, the green currency was negatively affected after the release of report showing that U.S. durable goods fell 2.1% in June relative to the prior 1.9% advance.