Mixed week for both the euro and the Swiss franc as a lack of top tier European and Swiss headlines meant counter currency influences were the main behavioral drivers for EUR and CHF pairs.
The Euro
Overlay of EUR Pairs: 1-Hour Forex Chart
EUR Weekly Performance from MarketMilk
European Headlines and Economic data
Monday:
- German import price index falls in September by -2.5% y/y
- Annual Euro area growth rate of broad monetary aggregate M3 decreased to 5.5% in September 2019 from 5.8% in August
- Annual growth rate of adjusted loans to non-financial corporations decreased to 3.7% in September from 4.3% in August
- EU nations agree Brexit delay until Jan. 31 as PM Johnson seeks election
Wednesday:
- Consumer Price Index CPI in Germany increased to 106.10 Index Points in October from 106 Index Points in September of 2019
- French economic growth beats expectations
- German jobless total rises more than expected in October
Thursday:
- German retail sales rise less than expected in September
- Euro area annual inflation down to 0.7%
- Euro area unemployment at 7.5%; EU28 at 6.3%
- GDP up by 0.2% in the euro area and by 0.3% in the EU28
- Guindos joins ECB officials warning against policy side effects
The Swiss Franc
Overlay of CHF Pairs: 1-Hour Forex Chart
CHF Weekly Performance from MarketMilk
Swiss Headlines and Economic data
Monday:
- Negative start to the week for the Swiss franc, likely on positive global risk sentiment after China Says Part of Phase 1 Trade Deal Text ‘Basically Completed’
Tuesday:
- Swiss central banker Schlegel says negative rates needed to make franc unattractive
- SNB’s Schlegel sees scope to cut negative rates further
Wednesday:
- KOF Economic Barometer rose by 1.6 points to 94.7 vs. a revised down 93.1 points in September
- Volatility in Swiss franc pairs picked up during the afternoon U.S. trading session, correlating with the news that the Federal Reserve cut interest rates another quarter point and lowered expectations of an interest rate hike any time soon. This had a broad global risk-on effect, pushing the franc lower against the comdolls while rising against the other safe haven currencies.
Thursday:
- Swiss National Bank rules out central bank cash to help pension funds
- Global risk aversion sentiment rose before the U.S. trading session to provide a spark to Swiss franc volatility, correlating with reports that China believes that a long-term trade deal with Trump is in doubt.
Friday:
- Swiss Consumer prices fell by 0.2% in October
- Swiss retail trade posted positive figures in September 2019
- Switzeraland PMI October 2019: Descent of the industry stopped
- Swiss franc pairs dipped during the U.S. session, likely on risk-on sentiment after a combination of a positive Chinese manufacturing PMI update, positive U.S-China trade negotiation updates, and a generally positive update from U.S. employment data.
