After a couple of weeks of light data, the euro could steal the forex show this week as the ECB gears up for its policy decision.
Apart from that, a handful of mid-tier reports from the eurozone and Switzerland might also be worth watching in the days ahead.
ECB Monetary Policy Statement (July 16, 12:45 pm GMT)
- No actual changes to interest rates or bond purchase programs expected for now
- Key issue is whether or not the central bank can deviate from the capital key, which is each member nation’s share of the ECB’s capitalization based on its GDP and population
- This is crucial in determining the fund allocation from the Pandemic Emergency Purchase Program
Mid-tier euro zone data
- Euro zone industrial production (July 14, 10:00 am GMT) to show 14.9% rebound after previous 17.1% slide
- Euro zone ZEW economic sentiment index (July 14, 10:00 am GMT) to dip from 58.6 to 55.8
- German ZEW economic sentiment index (July 14, 10:00 am GMT) to drop from 63.4 to 60.1
- Euro zone final CPI readings (July 17, 10:00 am GMT) to indicate no revisions from 0.3% headline figure and 0.8% core figure
SNB head Jordan’s speech (July 15, 2:30 pm GMT)
- Some jawboning expected as the franc has rallied on a fresh round of risk-off flows recently
- Remarks related to monetary policy and pandemic relief efforts might impact CHF volatility as well
- Long-term trend strength analysis for euro pairs shows that most are in bullish territory
- EUR/CHF, EUR/AUD, and EUR/NZD are in bearish territory based on moving averages
- Stochastic, however, suggests that EUR/CHF is bullish, along with EUR/NZD and EUR/GBP
- Williams %R for franc pairs paints a mixed picture, with GBP/CHF and NZD/CHF in bearish territory while the rest are on neutral grounds
Missed last week’s price action? Don’t forget to check out the EUR & CHF Weekly Review for July 6 – 10!