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It looks like another light week in terms of data from the euro zone and Switzerland. Can their currencies recover?

Both the euro and franc found themselves deep in the red last week on account of dismal economic updates.

Missed last week’s price action? Check out the EUR & CHF price review for May 4 – 8!

Here’s what you should look out for next:

Low-tier euro zone data

  • Euro zone industrial production (May 13, 10:00 am GMT) to show 12% drop
  • German final CPI and WPI (May 14, 7:00 am GMT)
  • German preliminary GDP (May 15, 7:00 am GMT) to reflect 2.3% contraction in Q1
  • Euro zone flash employment change (May 15, 10:00 am GMT) to show 2% decline in hiring
  • Euro zone flash GDP (May 15, 10:00 am GMT) to show another 3.8% contraction

Overall market sentiment

  • These low-yielding European currencies tend to benefit from risk-off flows, particularly when dollar weakness is also in play.
  • Headlines related to economies reopening or stimulus efforts from governments tend to boost risk appetite.

Technical snapshot

  • Stochastic paints a mostly bullish picture of euro pairs, with the shared currency oversold against the commodity currencies.
EUR Forex Pairs Stochastic from MarketMilk
EUR Forex Pairs Stochastic from MarketMilk
  • Moving averages suggest that most euro pairs are on bearish grounds.
  • The 200 SMAs of EUR/NZD, EUR/AUD, EUR/CAD, and EUR/GBP are giving bullish signals, but their 50 SMAs have yet to catch up.
EUR Forex Pairs Moving Averages from MarketMilk
EUR Forex Pairs Moving Averages from MarketMilk
  • As for CHF pairs, Williams %R suggests mostly neutral conditions.
  • EUR/CHF is looking bullish in the oversold region while NZD/CHF is overbought.
  • AUD/CHF is also approaching bearish territory as it hovers close to the overbought zone.
CHF Forex Pairs Williams %R from MarketMilk
CHF Forex Pairs Williams %R from MarketMilk