It’s all about medium-tier reports from the euro zone this week while the Swiss economy also has a few data points due.
Flash CPI and GDP readings (starting Oct. 30, 6:30 am GMT)
The numbers will be trickling in from the region’s top economies this week, providing fresh insight on the euro zone’s overall turnout when it comes to growth and inflation.
First up, France will print its flash GDP reading during Wednesday’s London session, possibly showing a 0.2% growth figure for Q3 2019, slower compared to the earlier 0.3% expansion.
Germany is also set to release its flash CPI reading in the same session, but analysts are just expecting price levels to have remained stagnant for yet another month. Other reports to watch out for on October 30 are the French consumer spending data, Spanish flash CPI, and German unemployment change figure.
The next day, Germany will release its retail sales report for September and possibly show a slower 0.3% increase compared to the earlier 0.5% gain.
France will print its preliminary CPI reading as well, but euro traders might hold out for the region’s aggregate flash CPI figures later in the session. The headline reading is slated to dip from 0.9% to 0.7% while the core version of the report might hold steady at 1.0%.
Along with these, the euro zone flash GDP for Q3 is also due, and it could show a weaker 0.1% uptick versus the previous 0.2% gain.
Low-tier Swiss data (starting Oct. 30, 8:00 am GMT)
The Swiss economy doesn’t usually print a lot of economic reports, so it’s worth paying attention even to low-tier data as these could spur some franc action.
On Wednesday’s London session, Switzerland will release its KOF economic barometer report and probably show an improvement from 93.2 to 93.5 for October. The Credit Suisse Economic Expectations index is also due then, and a climb from the earlier -15.4 read could also be bullish for the currency.
Come Friday, the Swiss economy has its CPI, retail sales, and manufacturing PMI all lined up. Price levels are expected to have stagnated in October after a 0.1% dip in the previous month while consumer spending likely advanced from -1.4% to -0.7% on a year-over-year basis.
SNB head Jordan’s speech (Oct. 31, 3:30 pm GMT)
Perhaps a bigger catalyst for franc volatility this week is SNB Chairman Jordan‘s speech “Challenges in Providence – Possibilities and Limits of Monetary Policy” in Bern.
Keep in mind that SNB officials seem uneasy about franc strength for quite some time and that the central bank is actually notorious for stepping in the forex market to keep its currency weak.
With that, any jawboning remarks or threats of lower deposit rates from the head honcho himself could put downside pressure on the franc as it would put traders on edge.