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The ECB is up this week! Can Lagarde and her gang bring sexy back for the euro?

I’ve got the deets on the potential market movers for the common currency in the next few days!

ECB’s policy decision (Sept 10, 11:45 am GMT)

  • As expected, the European Central Bank (ECB) kept its policies unchanged in July
  • Lagarde shared that outlook remains uncertain and that the central bank is on a wait and see mode
  • EUR popped higher before the event but erased all of its intraday gains before the end of the day
  • Analysts don’t see any changes from the central bank this week
  • Markets will be on the lookout for hints of (a) additional stimulus in the foreseeable future and (b) ECB’s response to the euro’s recent strength

Industrial production updates

  • Industrial production numbers hint at manufacturing activity and overall economic recovery
  • Germany (Sept 7, 6:00 am GMT) to see a slowdown from 8.9% to 4.5% in July
  • France (Sept 10, 6:45 am GMT) could only see a third of June’s growth in July
  • Italy (Sept 10, 8:00 am GMT) expected to print a 3.6% growth after an 8.2% uptick in June

Franc’s potential catalysts

  • Unemployment rate (Sept 9, 5:45 am GMT) expected to tick higher from 4.2% to 4.4% in August
  • Demand for the U.S. dollar and the euro can affect USD/CHF and EUR/CHF and influence the rest of the major franc pairs

Technical snapshot

  • Stochastic is flagging EUR/NZD and EUR/GBP’s “oversold” conditions on the daily time frame
  • EUR/CAD and EUR/AUD may soon reach “oversold” status
  • EUR/JPY and EUR/CHF remain on neutral territory
EUR Forex Pairs Stochastic from MarketMilk
EUR Forex Pairs Stochastic from MarketMilk
  • SMAs show EUR’s struggle to maintain its long-term bullish trend against the comdolls
  • EUR/JPY and EUR/CHF remain in short and long-term bullish trends
EUR Forex Pairs SMAs from MarketMilk
EUR Forex Pairs SMAs from MarketMilk
  • Stochastic sees CAD/CHF and NZD/CHF as “overbought” on the daily time frame
  • USD/CHF, AUD/CHF, and GBP/CHF may soon hit overbought status
  • CHF/JPY is heading towards “overbought” while EUR/CHF remains neutral
CHF Forex Pairs Stochastic from MarketMilk
CHF Forex Pairs Stochastic from MarketMilk
  • Daily EMAs reflect CHF’s short-term bearish trends against its major counterparts
  • Watch out for retracement or reversal opportunities on CHF/JPY and USD/CHF
CHF Forex Pairs EMAs from MarketMilk
CHF Forex Pairs EMAs from MarketMilk

Missed last week’s price action? Read EUR & CHF’s price recap for Aug. 31 – Sept. 4!