Franc pairs could steal the forex show this week as the SNB is scheduled to make its policy announcement. Any changes expected?
Meanwhile, the euro could take cues from a handful of mid-tier reports due throughout the week.
Here’s what you should watch out for:
Low-tier Swiss data (starting June 15, 7:30 am GMT)
- Swiss PPI (June 15, 7:30 am GMT) to show 0.4% drop in producer prices after previous 1.3% slump
- SECO Economic Forecasts (June 16, 6:45 am GMT) to include quarterly estimates for consumption, investment, employment and inflation
- SNB Financial Stability Report (June 18) to assess potential risks to financial stability and might provide a preview of central bank decision
SNB monetary policy assessment (June 18, 8:30 am GMT)
- No actual changes to -0.75% deposit rate expected
- There have been talks of SNB intervention over the past weeks as policymakers seem inclined to keep the currency weak against its rivals
- Note that SNB foreign currency reserves increased from 801 billion CHF to 816 billion CHF in the latest report
- Jawboning or currency intervention could spur extra volatility for franc pairs
ZEW Economic Sentiment index (June 16, 10:00 am GMT)
- German index to improve from 51.0 to 60.0 in June
- Euro zone index probably climbed from 46.0 to 53.4 this month
- Readings above 0.0 indicate optimism, below 0.0 reflects pessimism
- Considered a leading indicator of economic health as the survey was conducted among institutional investors and analysts
Technical snapshot
- Long-term trend strength analysis of euro pairs shows that most are in bullish territory.
- As for CHF pairs, the moving averages show that most are giving off bearish vibes.
- Even though EUR/CHF, CHF/JPY, and NZD/CHF are in the bullish region, the current trend is weakening.
Missed last week’s price action? Read GBP’s price recap for June 8 – 12!
