There’s not much in the way of top-tier catalysts from the euro zone and Switzerland this week, so market sentiment might once again reign supreme.
In the previous week, these European currencies saw a bit of weakness though, as a bit of optimism was in play ahead of the G20 an OPEC meetings.
Still, the euro and franc ended with a mixed performance, losing mostly against the Aussie, Kiwi, and pound. Here’s what’s coming up next:
Low-tier euro zone data
- French final CPI (Apr. 15, 7:45 am GMT) to stay unchanged at 0.0%
- German final CPI (Apr. 16, 7:00 am GMT) to stay unchanged at 0.1%
- Euro zone industrial production (Apr. 16, 10:00 am GMT) to show 0.1% dip
- Euro zone final CPI readings (Apr. 17, 10:00 am GMT) to have no revisions at 0.7% for the headline figure and 1.0% for the core figure
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.
- IMF meetings are coming up later in the week, so there could still be some focus on global stimulus.
- Here’s what governments and central banks in major economies have done so far since the coronavirus pandemic hit.
Technical snapshot
- Stochastic reveals that most euro pairs are in bullish territory, with the exception of EUR/USD and EUR/JPY.
- As for CHF pairs, Williams %R shows that most are looking bearish in the overbought region.
- EUR/CHF is the only franc pair that’s oversold while CHF/JPY and USD/CHF are on neutral grounds.
