The euro and the franc had one of their better weeks, with the latter scoring gains across the board. Here’s what to look out for next.
Euro zone CPI readings (June 28, 9:00 am GMT)
There’s not much in the way of top-tier data from the region this week, although traders might keep close tabs on the flash CPI readings to see if things are indeed looking up.
The headline figure is projected to have held steady at 1.2% this month while the core reading likely improved from 0.8% to 1.0%. If so, this could ease ECB rate cut expectations and give the shared currency more room to climb.
Keep in mind that flash PMI readings have recently come in stronger than expected, fueling hopes that the slowdown might be over. Traders could also get hints of how the region’s inflation figures might turn out after German prints it preliminary CPI on Thursday.
Overall market sentiment
As in the previous weeks, risk sentiment has been a major driving force for both the shared currency and the franc. These currencies had been able to take advantage of risk-off flows and anti-dollar movements, so we might see the same behavior in the days ahead.
In the past week, both the euro and franc were able to snatch some pips off the dollar selloff, which was seen to have been spurred by a dovish FOMC statement and trade tensions.
This time, the spotlight is on the G20 summit, particularly the Trump-Xi meeting which may or may not result in a trade deal.
Missed last week’s price action? Read the EUR & CHF price review for June 17-21!