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Both the franc and the euro found themselves ahead of the forex pack in the previous week. Can they hold on to their gains with these upcoming events?

ZEW Economic Sentiment reports (May 14, 9:00 am GMT)

Germany, the euro zone’s top economy, is set to print its ZEW Economic Sentiment report that typically serves as a leading indicator for performance.

Analysts are expecting to see a rebound from the earlier 3.1 figure to 5.1 for the current month, hinting at stronger optimism among institutional investors and economic analysts. These folks are also set to release their forecast for the entire region as well, with the index slated to tick higher from 4.5 to 5.0.

Germany’s ZEW reading has been in negative territory since June last year and has only recovered to show a positive reading last month. This means that another slump back to investor pessimism might indicate that the earlier pickup was just a fluke.

Preliminary economic data (starting May 15, 6:00 am GMT)

Wednesday’s London trading session has a handful of medium-tier preliminary data lined up. This includes the flash GDP readings from Germany and the euro zone as a whole.

The former is slated to show a 0.4% expansion for Q1 2019 after staying flat in the earlier period, likely allowing the latter to show another 0.4% growth figure. Weaker than expected results could keep euro traders on the lookout for more ECB easing measures.

Overall market sentiment

Risk aversion has been in play for the most part of the previous week, yet the euro and franc have been able to grab some of the safe-haven flows from the U.S. dollar.

You see, since most of the uncertainty has stemmed from resurfacing trade tensions between the U.S. and China, the Greenback wasn’t really in the best spot to take advantage of risk-0ff behavior.

Market watchers might stay wary of trade troubles in the days ahead, which could discourage dollar demand and divert traders to the euro and franc, especially if economic data does show signs of a rebound.

Missed last week’s price action? Read the EUR & CHF price review for May 6-10!