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The spotlight turns to the SNB for its upcoming monetary policy statement this week. Will this central bank also announce some form of stimulus or intervention?

ZEW economic sentiment indices (Mar. 17, 10:00 am GMT)

  • German ZEW index to slip from +8.7 to -25.0 in March
  • Euro zone ZEW index to fall from +10.4 to -23.1
  • Leading indicator of economic health based on survey of institutional investors and analysts

SNB monetary policy statement (Mar. 19, 8:30 am GMT)

  • No actual changes to policy rate of -0.75% expected
  • Other major central banks like the Fed and ECB have pumped up liquidity to keep markets afloat
  • SNB might also opt to intervene in the forex market to spur CHF weakness after recent rallies

Overall market sentiment

  • The franc has mostly been taking advantage of risk-off flows stemming from worsening coronavirus headlines.
  • Another week of rapidly rising cases and fatalities could extend flight to safety while indications that the outbreak is being contained could spur profit-taking.

Technical snapshot

  • RSI suggests that euro pairs are responding mostly to counter currency flows, although the shared currency remains overbought against the Aussie, pound, and Kiwi.
EUR Pairs RSI from MarketMilk
EUR Pairs RSI from MarketMilk
  • Moving averages are also painting a mixed picture of EUR pairs, with EUR/AUD looking most bullish and EUR/CHF deep in bearish territory.
EUR Pairs Moving Averages from MarketMilk
EUR Pairs Moving Averages from MarketMilk
  • Meanwhile, stochastic is indicating that AUD/CHF, EUR/CHF, and GBP/CHF are seeing oversold conditions.
CHF Pairs Stochastic from MarketMilk
CHF Pairs Stochastic from MarketMilk

Missed last week’s price action? Make sure you check out the EUR & CHF Weekly Review for Mar. 9 – 13!