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.
- Long-term trend strength analysis shows that most euro pairs are still looking bullish.
- 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.
Missed last week’s price action? Make sure you check out the EUR & CHF Weekly Review for Mar. 16 – 20!