Both the euro and Swiss franc were net losers on the week as strong counter currency flows and the demand for the low-yielders fell with early week positive signs from the global trade story.
European Headlines and Economic data
- Germany’s November Ifo Business Climate Index Rises
- Lane says ECB policies are ‘in good shape’ in current scenario
- ECB’s Villeroy urges Germany to use fiscal tools to spur growth
- German Consumer prices in November 2019: 1.1% rise on November 2018 expected
- Annual growth rate of broad monetary aggregate M3 stood at 5.6% in October 2019
- Annual growth rate of adjusted loans to non-financial corporations increased to 3.8% in October from 3.6% in September
- German retail sales drop in October
- French Q3 growth steady as bigger pay packets boost consumer spending
- Euro area annual inflation up to 1.0%
- Euro area unemployment at 7.5% in October vs. 7.6% previous
- ECB board candidates back bond buys and negative rates
The Swiss Franc
Swiss Headlines and Economic data
- No Swiss related catalysts to explain the franc’s slow start to the week, so it’s likely global risk sentiment influenced the pair lower. Trader’s seemed to be in risk taking mode through the Wednesday session (likely the reason for the franc’s grind lower) on positive U.S.-China trade headlines (China to raise penalties on IP theft in trade war compromise and China and U.S. ‘very close’ to phase one trade deal).
- Switzerland’s GDP rose by 0.4% in the 3rd quarter of 2019, after increasing by 0.3% in the previous quarter.
- Swiss KOF Economic barometer falls to 93.04 vs. 94.76 previous
- Global risk sentiment fell to negative to close out the week after China threatens to take ‘strong counter-measures’ against US after Hong Kong bill signings. We saw some lift in the franc against some of the majors, but not enough to bring the currency out of the red for the week.