It’s all about low-impact reports from both the euro zone and Swiss economy this week, but these should be worth watching to gauge how higher-tier reports might turn out later on.
Low-tier euro zone data (starting Jan. 6, 8:00 am GMT)
- German retail sales to rebound by 1.1% after earlier 1.9% drop
- Euro zone Sentix investor confidence index to climb from 0.7 to 3.0 in Jan
- Euro zone flash headline CPI to advance from 1.0% to 1.3%
- Euro zone flash core CPI to hold steady at 1.3% in Dec
- German factory orders to recover by 0.2% after previous 0.4% drop
- German industrial production to post 0.9% uptick after earlier 1.7% slide
Low-tier Swiss data (starting Jan. 7, 8:30 am GMT)
- Swiss CPI to post another 0.1% dip in Dec
- Swiss retail sales to increase by 0.5% versus earlier 0.7% uptick
- SNB foreign currency reserves due on Jan. 9, 9:00 am GMT
Overall market sentiment
- The euro and franc typically take advantage of risk-off flows, especially when traders are feeling hesitant to buy the safe-haven dollar.
- Geopolitical risks stemming from the conflict between the U.S. and Iran have been present since the start of the year.
- Stochastic is showing that most euro pairs are bullish, with EUR/CHF and EUR/CAD looking most oversold among the bunch.
- Franc pairs are also looking mixed, and moving averages reveal that the Swiss currency is most bearish against the pound and Kiwi.