Partner Center Find a Broker

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

EUR Pairs Trend Strength Analysis
EUR Pairs Trend Strength Analysis
  • Only EUR/AUD and EUR/CHF are in the bearish region, with the latter seeing a weakening trend.
  • As for CHF pairs, the moving averages show that most are giving off bearish vibes.
CHF Pairs Trend Strength from MarketMilk
CHF Pairs Trend Strength from MarketMilk
  • 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!