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It was a reversal of fortunes for the euro and franc last week as the former caved to ECB easing speculations while the latter was boosted by risk aversion. What’s next?

Overall market sentiment

Since there are no top-tier catalysts from both the euro zone and Swiss economy this week, price action could mostly hinge on changes in market sentiment. And if previous dynamics are any indication, the franc could stand to benefit from more risk-off moves.

Keep in mind that, even though the euro does enjoy some safe-haven demand from time to time, its shine is currently dimmed by ECB rate cut prospects. Then again, market participants might also be wary of potential SNB intervention or negative deposit rates if the franc rallies too strongly.

In any case, there are plenty of factors that could keep risk-off moves in play for the rest of the week, including a fresh dose of trade tensions from Trump’s tariffs on China and rising odds of a “no deal” Brexit.

Missed last week’s price action? Read the EUR & CHF price review for July 29 – August 2!