Swissie to See Volatility on SNB Decision

The euro spent the day trading off of shifts in global risk sentiment, finishing sharply higher against the Japanese Yen and Swiss Franc on a surge in the carry trade. Yet the single currency remained unable to clear the key $1.4750 against the US dollar, and continued failure at the psychologically significant level could potentially leave the euro offered through short-term trade. Our Technical Analyst Jamie Saettele believes that a bearish bias is warranted as long as price remains below this key resistance point. (EURUSD Technical Outlook) A limited morning of European event risk did little to shift fundamental outlook for the euro, and a relatively empty economic calendar suggests that the currency may continue to move off of shifts in global risk sentiment. It may likewise be important to watch for reactions to upcoming French inflation and employment numbers due at 06:45 GMT. Though consensus forecasts call for little change in CPI for the month of November, any sharp surprises could drive short-term EUR volatility. Otherwise, traders will monitor any new developments from a Swiss National Bank rate decision at 08:30 GMT. The bank is very widely forecast to leave rates unchanged through its quarterly decision, but any noteworthy shifts in rhetoric could easily drive Swiss Franc and euro price movements.