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Both the euro and franc still managed to score some risk-off gains last week as traders were focused on COVID-19 updates. Can this carry on?

Flash PMI readings (Mar. 24, starting 9:15 am GMT)

  • Reading above 50.0 reflects industry expansion, below 50.0 signals contraction
  • French flash manufacturing PMI to fall from 52.5 to 39.6
  • French flash services PMI to drop from 49.8 to 39.4
  • German flash manufacturing PMI to slip from 48.0 to 40.1
  • German flash services PMI to tumble from 52.5 to 43.0
  • Euro zone flash manufacturing PMI to fall from 49.2 to 40.1
  • Euro zone flash services PMI to drop from 52.6 to 40.0

Overall market sentiment

  • Market participants are paying close attention to stimulus efforts in each major economy to gauge if things might get worse or not.
  • Risk-off flows stemming from a huge jump in confirmed cases and fatalities tend to benefit the lower-yielding franc and euro.

Technical snapshot

  • Long-term trend strength analysis shows that most euro pairs are still looking bullish.
EUR Pairs Moving Averages from MarketMilk
EUR Pairs Moving Averages from MarketMilk
  • Only EUR/CHF, EUR/USD, and EUR/JPY are in bearish territory.
  • Stochastic shows that most CHF pairs are looking bullish, with the exception of the overbought USD/CHF.
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. 16 – 20!