EUR & CHF Weekly Forecast (Dec. 9 – 13)

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)

Technical Snapshot

• 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!