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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.
EUR Pairs RSI from MarketMilk
EUR Pairs RSI from MarketMilk
  • 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.
CHF Pairs Stochastic from MarketMilk
CHF Pairs Stochastic from MarketMilk

Missed last week’s price action? Check out the EUR & CHF Weekly Review for Dec. 2- 6!