Both the franc and euro have central bank decision to contend with this week. Here’s what you should look out for.
German ZEW economic sentiment index (Dec. 10, 11:00 am GMT)
- Recovery from -2.1 to +1.1 expected, indicative of shift to optimism
- Euro zone aggregate index to recover from -1.0 to +2.2
- Considered a leading indicator of economic health based on survey of institutional investors and analysts
SNB policy decision (Dec. 12, 9:30 am GMT)
- No actual change to monetary policy expected
- SNB policy rate to be maintained at -0.75%
- Some degree of jawboning still likely
ECB monetary policy statement (Dec. 12, 1:45 pm GMT)
- First ECB announcement with new Chairperson Lagarde
- No change to main refinancing rate at 0.00% expected
- No change to TLTRO expected as well
- Press conference at 2:30 pm GMT
Overall market sentiment
- EUR and CHF typically take advantage of risk-off anti-dollar moves
- Catalysts to watch out for include U.K. elections (Dec. 12) and next batch of U.S. tariffs (Dec. 15)
- Most euro pairs are on neutral grounds according to RSI at the moment, with EUR/GBP and EUR/NZD being the only ones oversold.
- Franc pairs, on the other hand, are looking mixed based on stochastic.
- CHF/JPY and CHF/USD approaching overbought conditions while the Swiss currency remains oversold versus the Kiwi and pound.
Missed last week’s price action? Check out the EUR & CHF Weekly Review for Dec. 2- 6!