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It’s all about mid-tier releases from the eurozone’s top economies this week, and German reports might be in focus.

The Swiss economy also has a handful of noteworthy releases lined up.

Here are the potential catalysts on the docket:

Germany’s economic reports

  • Retail sales (Jan. 5, 8:00 am GMT) to show 2.0% slide in spending after earlier 2.6% gain
  • Unemployment change (Jan. 5, 9:55 am GMT) to indicate 10K increase in joblessness for November
  • Preliminary CPI (Jan. 6, 1:00 am GMT) to print 0.6% rebound in price levels after earlier 0.8% drop
  • Factory orders (Jan. 7, 8:00 am GMT) show 1.2% slide after previous 2.9% increase
  • Industrial production (Jan. 8, 8:00 am GMT) to print 0.7% uptick after earlier 3.2% gain

Flash CPI readings (Jan. 7, 11:00 am GMT)

  • Headline CPI to show 0.2% dip in December, adding to previous 0.3% decline
  • Core CPI to post another 0.2% uptick for the same month
  • Stronger than expected results might be bullish for the shared currency, as these could suggest that the ECB does not need to ease again anytime soon

Swiss economic data

  • Manufacturing PMI (Jan. 4, 9:30 am GMT) to dip from 55.2 to 54.4 in December
  • CPI (Jan. 5, 8:30 am GMT) to show flat reading in December after earlier 0.2% dip
  • Unemployment rate (Jan. 7, 7:45 am GMT) to hold steady at 3.4%
  • Retail sales (Jan. 7, 8:30 am GMT) to advance from 3.1% to 3.5% year-over-year
  • SNB foreign currency reserves (Jan. 8, 9:00 am GMT) to rise from earlier 876 billion CHF level

Overall market sentiment

  • These lower-yielding European currencies tend to benefit from risk-off flows
  • Sentiment in the region has also improved thanks to the last-minute Brexit agreement, shoring up demand for the euro and franc
  • However, fears of a new strain of the COVID-19 virus spreading among European nations could keep gains in check

Technical Snapshot

  • Stochastic suggests that EUR/AUD and EUR/GBP are bullish in the oversold region
  • The rest of the euro pairs are in neutral territory
EUR Forex Pairs Stochastic from MarketMilk
EUR Forex Pairs Stochastic from MarketMilk
  • The euro has been most volatile against the Aussie over the past seven days, moving an average of 92 pips per day
EUR Forex Pairs Volatility from MarketMilk
EUR Forex Pairs Volatility from MarketMilk
  • As for franc pairs, Stochastic shows that only CHF/JPY is bullish
  • AUD/CHF, GBP/CHF and NZD/CHF could be in for some losses, based on this oscillator
CHF Forex Pairs Stochastic from MarketMilk
CHF Forex Pairs Stochastic from MarketMilk