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Only low to mid-tier reports are lined up from the euro zone this time, but the shared currency could still have some momentum left from last week.

Recall that the ECB pumped up its stimulus efforts while Germany also unveiled an additional aid package.

Here are the potential catalysts to watch out for:

German industrial production (June 8, 7:00 am GMT)

  • Reflects the change in output from manufacturers, mines and utilities
  • Considered a leading indicator of economic health as businesses adjust production to consumer conditions
  • Analysts expect to see a 16% decline in production for April after the earlier 9.2% slump

Low-tier euro zone data

  • Eurozone Sentix Investor Confidence Index (June 8, 9:30 am GMT) to improve from -41.8 to -22.0
  • German trade balance (June 9, 7:00 am GMT) to show a smaller surplus of 11.9 billion EUR from earlier 12.8 billion EUR
  • French trade balance (June 9, 7:45 am GMT) to show a wider deficit of 3.4 billion EUR from previous 3.3 billion EUR
  • French industrial production (June 10, 7:45 am GMT) to print 20.0% decline
  • Eurozone industrial production (June 12, 10:00 am GMT) to show 20.0% drop

Overall risk sentiment

  • The lower-yielding euro and franc tend to give up ground during risk rallies, although the former has been banking on stimulus efforts lately.
  • Factors that boost risk-taking include improving global economic conditions, progress in COVID-19 vaccine trials, and even more aid packages from governments and central banks.

Technical snapshot

EUR Pairs Moving Averages from MarketMilk
EUR Pairs Moving Averages from MarketMilk
  • Stochastic, on the other hand, shows that the euro is bearish against the franc, yen, and dollar.
EUR Pairs Stochastic from MarketMilk
EUR Pairs Stochastic from MarketMilk
  • The oscillator also puts EUR/NZD on bullish grounds while the rest are in neutral territory.
  • As for CHF pairs, RSI suggests that most are giving off bearish vibes.
  • In particular, AUD/CHF, NZD/CHF and EUR/CHF are looking very overbought.
GBP Pairs RSI from MarketMilk
GBP Pairs RSI from MarketMilk

Missed last week’s price action? Read the EUR & CHF price recap for June 1 -5!