The Euro spent most of the week trading in the green against the majors despite net negative economic updates from Europe and mixed-to-positive developments on the Brexit story.
The Euro
Overlay of EUR Pairs: 1-Hour Forex Chart
European Headlines and Economic data
Monday:
- Germany Readying Stimulus Plan as Contingency for Deep Recession
- Bundesbank warns German economy could enter recession
- June 2019 the current account of the euro area recorded a surplus of €18B, compared with a surplus of €30B in May 2019
- Annual inflation down to 1.0% in the euro area; Down to 1.4% in the EU
Tuesday:
- German PPI increased by 0.1% m/m
- Italian PM resigns with attack on ‘opportunist’ Salvini
Wednesday:
- Dublin refuses to engage with UK on plan for no-deal Brexit
- Boris Johnson looks for an EU ally in Merkel as he seeks to save Brexit
- Boris Johnson’s Brexit approach making no-deal ‘far more likely’, Ireland’s deputy PM warns
- German Finance Minister: Brexit deal will not be changed
- Merkel: With imagination, Irish ‘backstop’ issue can be solved in 30 days
Thursday:
- IHS Markit Flash Eurozone PMI: growth remains muted amid ongoing manufacturing woes
- German economy continues to underperform in August
- ECB eyes stimulus package as growth looks weaker: minutes
Friday:
- Risk aversion sentiment picked up big time during U.S. session on Friday to send the euro higher against the risk-on currencies while falling to the safe havens. The volatility came after news that China will retaliate with tariffs on $75 billion worth of US goods and resume auto duties, and the fears accelerated after Trump orders US companies to look for ‘alternative to China’ in tweet to fuel the trade war flames.
The Swiss Franc
Overlay of CHF Pairs: 1-Hour Forex Chart
Swiss Headlines and Economic data
Tuesday:
- Swiss foreign trade slipped into the downside in July 2019
Friday:
- Risk aversion sentiment picked up big time during U.S. session on Friday to send the Swiss franc higher against all of the major currencies except the Japanese yen who was also enjoying its safe haven status among traders. The volatility came after news that China will retaliate with tariffs on $75 billion worth of US goods and resume auto duties, and the fears accelerated after Trump orders US companies to look for ‘alternative to China’ in tweet to fuel the trade war flames. The Swiss franc had been grinding lower all week on somewhat Brexit optimism strengthening the euro and pound, but it headed into the weekend as a net winner thanks to the big rise in geopolitical risk.
