On Wednesday, KoF Swiss leading indicator which is estimated to retreat to 2.10 in July from the preceding 2.29 will be available at 09:30 GMT. Thereafter, eyes will be on MBA mortgage applications for July 22 at 11:00 GMT followed by durable goods orders report for June which is expected to show a 0.3% rise in June from the prior 1.9% advance.
Finally, at 18:00 GMT, Fed’s Beige book will be out. The main highlight in the market remains 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.
On Tuesday trading, the dollar fell against the Swiss franc heading towards a new record low, especially after U.S President Obama warned that the split among policy makers may damage the economy, stating that if the ceiling is not increased before August 2, “deep economic crisis” will face the economy. Regarding fundamentals, the U.S. housing data showed decline in June while consumer confidence rose above expectations in July.