EUR & CHF Weekly Forecast – Fresh Batch of PMIs Coming Up

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It’s the third week of the month, which means a fresh set of PMI readings from the top eurozone economies. How might the euro react?

Here’s a shortlist of market events you need to watch out for:

Flash PMI readings (June 23, starting 8:15 am GMT)

Provides an early glimpse into how business sectors fared in the current month and considered a leading indicator of economic activity
French flash services PMI to climb from 31.1 to 44.9
French flash manufacturing PMI likely improved from 40.6 to 46.1
German flash manufacturing PMI to rise from 36.6 to 41.5
German flash services PMI up from 32.6 to 41.7
Eurozone flash manufacturing PMI to increase from 39.4 to 43.8
Eurozone flash services PMI to climb from 29.0 to 39.1
Readings above 50 reflect industry expansion, below 50 signals contraction

Consumer confidence index (June 22, 3:00 pm GMT) likely climbed from -19 to -15
German IFO business climate index (June 24, 9:00 am GMT) to rise from 79.5 to 85.0

The euro and franc tend to get pushed around by risk flows, with safe-haven demand typically lifting these lower-yielding European currencies
Geopolitical risks are still heightened, and escalating tensions could be bullish for the euro and franc

Long-term trend strength analysis paints a mixed picture of euro pairs, with EUR/AUD deep in the bearish region
EUR/GBP and EUR/USD are in bullish territory

Stochastic confirms that EUR/JPY is bullish in the oversold region, along with EUR/CHF and EUR/USD
Meanwhile, EUR/GBP is giving off bearish vibes based on this technical indicator

As for franc pairs, Stochastic shows that CHF/JPY, EUR/CHF, and GBP/CHF are giving off bullish vibes in the oversold region
CHF Pairs Stochastic from MarketMilk