Euro bulls were able to hold their ground last week, despite downbeat economic data. Will it be the same case this time around?
ZEW Economic Sentiment index (Oct. 15, 9:30 am GMT)
Perhaps the only major report due from the euro zone economy for the week is the ZEW Economic Sentiment survey, which comprises an index for Germany and for the entire region.
Germany’s ZEW Economic Sentiment index is expected to slip deeper into negative territory from -22.5 to -27.0, reflecting worsening pessimism among institutional investors and analysts.
Meanwhile, the region’s ZEW index is also slated to fall from -22.4 to -26.7, also indicating more pessimism for the current month.
Keep in mind that this index is considered a leading indicator of economic health since respondents have crunched the numbers for the survey’s six-month outlook.
The lack of any other major reports would likely leave the shared currency and the lower-yielding Swiss franc sensitive to changes in market sentiment as usual.
As in the previous weeks, updates on China and Brexit could be market- movers as leaders are hard-pressed to come up with deals. For now, there has been a bit of a truce between the U.S. and China, but resurfacing tensions could still bring some safe-haven flows to the franc and euro.
Missed last week’s price action? Read the EUR & CHF price recap for October 7-11!