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There’s not much in the way of major reports from the region, but a fresh set of political troubles in Italy might keep things interesting.

A couple of speeches by ECB head Lagarde and the central bank meeting minutes are also worth keeping tabs on.

There are no top-tier catalysts lined up from the Swiss economy, though.

Here’s what you should watch out for:

ECB Chairperson Lagarde’s speeches

  • Scheduled to moderate an online panel discussion at the One Panel Summit on Jan. 11, 3:40 pm GMT
  • Due to give a speech at the Reuters Next online event on Jan. 13, 10:00 am GMT
  • Optimistic remarks on the region’s fight against the pandemic and an upbeat outlook for ECB action could be enough to lift the shared currency

ECB monetary policy meeting accounts (Jan. 14, 1:30 pm GMT)

  • Detailed record of the central bank’s latest policy meeting, which includes insights on the economic conditions that influenced their decision on monetary policy
  • In their December rate statement, the ECB sounded positive about the vaccine rollout and the slight rebound in Q3 economic performance
  • However, the resurgence of the virus in the last few months of 2020 led the Governing Council and staff to conclude that the near-term repercussions of the pandemic on growth and inflation has been more pronounced
  • Dovish remarks suggesting further bond purchases or potential rate cuts might undermine euro strength

Political uncertainty in Italy

Overall market sentiment

  • These lower-yielding European currencies tend to benefit from risk-off flows
  • Updates on the new strain of the COVID-19 virus spreading among European nations could keep gains in check, although more developments on the vaccine rollout appears to be providing some support

Technical Snapshot

  • Short-term moving averages place majority of euro pairs in bearish territory while the rest are in a weakening bullish trend
  • In particular, EUR/JPY, EUR/CHF, and EUR/USD might see a reversal from their climb soon
EUR Forex Pairs Trend Strength from MarketMilk
EUR Forex Pairs Trend Strength from MarketMilk
  • The euro has been most volatile against the Aussie over the past seven days, moving an average of nearly a hundred pips per dayEUR Forex Pairs Volatility from MarketMilk

EUR Forex Pairs Volatility from MarketMilk

  • As for franc pairs, Stochastic suggests that the Swiss currency might be in for gains against the commodity currencies
  • AUD/CHF, NZD/CHF and CAD/CHF are in the overbought zone while the rest are on neutral grounds
CHF Forex Pairs Stochastic from MarketMilk
CHF Forex Pairs Stochastic from MarketMilk

Missed last week’s price action? Check out the EUR & CHF Price Review for Jan. 4 – 8!