Partner Center Find a Broker

With not much on the economic docket of the eurozone this week, the focus could stay on discussions about the EU Recovery Fund, as well as market sentiment.

Here’s what you should look out for when trading euro and franc pairs:

EU Recovery Fund talks

  • European Commission proposed that the 750 billion EUR recovery facility could be made up of two-thirds grants and the rest in loans
  • A compromise could come down to 70% of the fund being broken down in grants and loans while leaving the remainder up for distribution until 2023
  • Eurogroup meetings to resume on July 9 while heads of state are gearing up for another meeting on July 17-18

Low-tier euro zone data

  • German factory orders (July 6, 7:00 am GMT) to show 15.1% rebound from earlier 25.8% slide
  • Eurozone Sentix investor confidence index (July 6, 9:30 am GMT) to improve from -24.8 to -10.8
  • Eurozone retail sales (July 6, 10:00 am GMT) to print a 15% increase after earlier 11.7% drop
  • German industrial production (July 7, 7:00 am GMT) to increase by 10.1% after previous 17.9% slump
  • EU economic forecasts (July 8) to indicate any revisions to growth and inflation projections related to COVID-19 pandemic

Low-tier Swiss data

  • SNB foreign currency reserves (July 7, 8:00 am GMT) to reveal whether or not the central bank is gradually intervening in the forex market
  • Swiss jobless rate (July 8, 6:45 am GMT) to climb from 3.4% to 3.6%

Technical snapshot

  • Stochastic shows that euro pairs are mostly on neutral grounds, with only EUR/AUD, EUR/CHF, and EUR/NZD indicating oversold conditions.
EUR Forex Pairs Stochastic from MarketMilk
EUR Forex Pairs Stochastic from MarketMilk
  • Franc pairs are looking more mixed, as CHF/JPY and NZD/CHF are looking bearish in the overbought region based on Stochastic.
CHF Pairs Stochastic from MarketMilk
CHF Pairs Stochastic from MarketMilk