EUR & CHF Weekly Forecast – Leading Indicators On Tap

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Can this week’s set of leading indicators and low-tier data push the euro and franc in a clear direction this week?

Or are we about to see another round of choppy price action? Here’s what’s coming up!

Eurozone leading indicators

Sentix investor confidence index (Aug. 10, 9:30 am GMT) to improve from -18.2 to -16.0
German ZEW economic sentiment index (Aug. 11, 10:00 am GMT) to dip from 59.3 to 55.0
Eurozone ZEW economic sentiment index (Aug. 11, 10:00 am GMT) to fall from 59.6 to 55.3
Eurozone flash employment change (Aug. 14, 10:00 am GMT) to print another quarterly drop in hiring?
Eurozone flash GDP (Aug. 14, 10:00 am GMT) to indicate 12.1% contraction for Q2

Unemployment rate (Aug. 10, 6:45 am GMT) to climb from 3.3% to 3.4% in July
Swiss PPI (Aug. 14, 7:30 am GMT) to show another increase in producer prices after earlier 0.5% uptick

Risk-off flows tend to benefit the lower-yielding euro and franc, especially while the U.S. dollar is under downside pressure
There is still a lot of market focus on second wave COVID-19 fears as another round of lockdown measures could prompt a flight to safety
Rallying gold prices are also in focus, but traders seem wary of buying up the positively-correlated franc due to SNB intervention threats

Stochastic paints a mixed picture of EUR pairs, with the majority on neutral grounds and the rest in overbought territory
EUR/NZD, EUR/USD, and EUR/JPY are giving off bearish vibes based on this oscillator

As for CHF pairs, short-term moving averages suggest that majority are in bearish territory, with GBP/CHF and CHF/JPY giving off weakening bullish vibes