Swissy steadily continued to extend the gains on Tuesday rising to a new all time high versus the euro as haven demand continued to support the Swiss Franc amid the rising uncertainty.
Swissy is holding strong despite the downside pressure from the currency gains on growth, where data today showed retail sales rallied and manufacturing unexpected widened which was further support for the franc.
Still, the fears dominant the market over the outlook for the euro area and slowing growth are weighing on the sentiment and keeping investors biased towards haven assets like the franc. Investors are still wary over the ability of leaders to contain the debt crisis, especially as Italian and Spanish bond yields rallied to multi-year highs today stocking concerns that the situation is still worsening and the market will block the nations out of funding.
We still see the jitters and volatility evident and to prevail on Wednesday with services fundamentals, jobs figures from the United States and ahead of the rate decision from the ECB on Thursday.
The euro area is set to release the final revision for the PMI Services for July at 08:00 GMT and expected to maintain the slowing pace from June unrevised from the advanced estimate of 51.4; also the final estimate for the Composite Index is also expected to hold weak at 50.8.
At 09:00 GMT the June retail sales are expected with 0.5% rebound following 1.1% slump in May and on the year to ease the drop to -0.9% following -1.9%.