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Even with only a few reports on deck, it could still be an exciting week for the euro and franc as other catalysts could steal the show.

Here’s what traders are likely to keep close tabs on:

EU Economic Summit

Flash PMI readings (July 24, starting 8:15 am GMT)

  • These leading indicators are based on a survey of purchasing managers in their respective industries
  • Above 50 indicates industry expansion, below 50 reflects contraction
  • French flash services PMI to climb from 50.7 to 52.3 to signal stronger growth
  • French flash manufacturing PMI to rise from 52.3 to 53.2
  • German flash manufacturing PMI to increase from 45.2 to 48.0 to reflect slower contraction
  • German flash services PMI to improve from 47.3 to 50.2, indicating a shift from contraction to growth
  • Eurozone flash manufacturing PMI to climb from 47.4 to 49.0
  • Eurozone flash services PMI to rise from 48.3 to 51.0
  • Stronger than expected actual results could be bullish for the euro while disappointing readings could spur losses

Overall market sentiment

  • Traders continue to keep close tabs on the COVID-19 situation all over the globe, with second wave fears limiting appetite for risk
  • Several nations and U.S. states are reporting a fresh surge in confirmed cases, prompting some reversals of reopenings
  • Business surveys from the major economies can also influence the demand for these lower-yielding currencies as these give hints on the pace of economic activity after strict lockdown measures
  • Earnings reports of key U.S. companies may also influence safe-haven demand if hits or misses are notable

Technical snapshot

  • Stochastic suggests that most euro pairs are looking bearish in the overbought territory
EUR Pairs Stochastic from MarketMilk
EUR Pairs Stochastic from MarketMilk
  • In particular, EUR/USD and EUR/JPY seem to be the most bearish of the bunch
  • As for CHF pairs, moving averages are painting a mixed picture, with more pairs in the bullish region
CHF Pairs Moving Averages from MarketMilk
CHF Pairs Moving Averages from MarketMilk

Missed last week’s price action? Read EUR & CHF’s price recap for July 13 – 17!