The euro slid lower against its forex counterparts on account of downbeat mid-tier data and worsening outbreak numbers last week. Any chance to bounce this time?
Low-tier euro zone data
- German factory orders (Apr. 6, 7:00 am GMT) to show 2.7% slump after earlier 5.5% gain
- Euro zone Sentix investor confidence index (Apr. 6, 9:30 am GMT) to slip from -17.1 to -30.5 in April
- German industrial production (Apr. 7, 7:00 am GMT) to drop by 0.7% in February
- French industrial production (Apr. 10, 7:45 am GMT) to show flat reading in February
SNB foreign currency reserves (Apr. 7, 8:00 am GMT)
- Total value of foreign currency reserves held by the central bank
- A large jump in value could signal forex intervention to keep CHF weak.
- Reading rose from 764B CHF to 769B CHF in February.
ECB meeting minutes (Apr. 9, 12:30 pm GMT)
- Transcript of the ECB Governing Board’s most recent monetary policy meeting
- Central bank has been aggressive in increasing measures that could limit the economic impact of the coronavirus outbreak on the economy.
- ECB announced additional LTROs to provide immediate liquidity for banks and stands ready to add more if needed.
Overall market sentiment
- Market watchers have been more focused on coronavirus-related updates, as well as stimulus efforts, that impact risk-taking.
- The euro and franc tend to benefit from safe-haven flows as traders steer clear of the U.S. dollar.
- However, a rising number of fatalities in Europe could keep gains in check.
- Group of EMU finance ministers to present heads of state with options to help manage the fiscal repercussions of the COVID-19 outbreak.
- Stochastic suggests that a number of euro pairs are oversold or in bullish territory.
- In particular, the shared currency is looking bullish against the commodity currencies and sterling.
- As for CHF pairs, Williams %R reveals that most are in overbought territory, except for CHF/JPY, USD/CHF, and EUR/CHF.
Missed last week’s price action? Make sure you check out the EUR & CHF Weekly Review for Mar. 30 -Apr. 3!