Will the euro and franc continue to lose their shine against their major counterparts this week?
Here are potential catalysts to watch if you’re planning on trading the European currencies in the next few days:
Eurozone consumer and GDP reports
- Germany’s final GDP (Aug 25, 6:00 am GMT) expected to maintain -10.1% reading in Q1 2020
- France’s consumer confidence (Aug 26, 6:45 am GMT) to inch higher from 94.0 to 96.0
- Germany’s GfK consumer confidence (Aug 28, 6:00 am GMT) to improve from -0.3 to 2.5
- France’s consumer spending (Aug 28, 6:45 am GMT) seen slowing down from 9.0% to 2.5%
- France’s preliminary GDP (Aug 29, 6:45 am GMT) to see a deeper contraction, from -5.9% to -13.8% in Q2 2020
Swiss data releases
- Credit Suisse economic expectations (Aug 26, 8:00 am GMT) to jump from 42.4 to 51.0 in July
- Annualized quarterly GDP reading (Aug 27, 5:45 am GMT) expected to worsen from -1.3% to -12.7% in Q2 2020
- KOF leading indicators (Aug 28, 7:00 am GMT) to improve from 85.7 to 91.0 in August?
Second wave concerns
- Countries like Belgium, Italy, France, Spain, and the Netherlands are seeing second wave numbers
- Hospitality and fatality rates point to the “second wave” being less lethal than the first one
- How the governments respond to a second wave will matter in near term growth outlook for the region
Technical snapshot
- Stochastic is flagging EUR/CAD’s “oversold” conditions on the daily time frame
- EUR/NZD may soon reach “overbought” territory
- EUR/CHF may also hit oversold levels in the next few days
- EMAs point to the euro seeing short-term bearish pressure across the board
- Watch out for retracement or reversal opportunities on EUR/JPY and EUR/CHF
- EUR was most volatile against USD, NZD, GBP, and JPY in the last seven days
- CHF’s longer-term bullish trends may be weakening against JPY, CAD, and GBP
- CHF remains bullish against NZD and USD
- The franc was most volatile against the dollar and the comdolls in the last seven days
Missed last week’s price action? Read EUR & CHF’s price recap for August 17 – 21!
