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A bunch of medium-tier reports are due from the euro zone this week, but these might pale in comparison to the ECB events. Read on to know what’s up!

Medium-tier euro zone data (starting Jan. 13, 8:00 am GMT)

  • Jan. 13: German wholesale price index and Italian retail sales data due
  • Jan. 15: Euro zone industrial production and trade balance due
  • Jan. 17: Euro zone current account balance and final CPI readings lined up

ECB monetary policy meeting accounts (Jan. 16, 1:30 pm GMT)

  • ECB officials decided to sit on their hands in the December monetary policy decision.
  • Head honcho Lagarde noted that incoming data points to muted inflation pressures and that policy review is due.
  • More dovishness among other policymakers could drag the shared currency lower.

ECB head Lagarde’s testimony (Jan. 16, 7:00 pm GMT)

  • ECB Chairperson Lagarde is due to give a speech at a New Year’s reception in Frankfurt.
  • Any remarks related to economic performance and monetary policy could stir a strong reaction from EUR pairs.

Overall market sentiment

  • As in previous weeks, risk sentiment could also play a role in determining where these European currencies are headed, especially since there are no major reports due for the franc.
  • Risk-off flows combined with anti-dollar price action tend to be bullish for the Swiss currency and euro.
  • Geopolitical uncertainties remain in play, and the market focus could return to the U.S.-China trade negotiations this week.

Technical snapshot

  • The trend analysis tool on MarketMilk shows that most euro pairs are in bearish territory, with the exception of EUR/JPY.
EUR Trend Analysis from MarketMilk
EUR Trend Analysis from MarketMilk
  • Stochastic reveals that most franc pairs are overbought, most particularly against the yen and pound.
CHF Pairs Stochastic from MarketMilk
CHF Pairs Stochastic from MarketMilk

Missed last week’s price action? Read the EUR & CHF price recap for January 6 – 10!