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The euro and Swiss franc took an early lead on Monday with better-than-expected (but still contractionary) business sentiment data from Europe, which was enough to weather the negative European economic updates, continued Brexit uncertainty, and counter currencies flows.

Global risk sentiment was on the rise as traders stayed optimistic on a U.S. stimulus package, which did put pressure on the negative yielding currencies, but not enough to take away their net positive performances for the week.

The Euro

Overlay of EUR Pairs: 1-Hour Forex Chart
Overlay of EUR Pairs: 1-Hour Forex Chart
EUR Weekly Performance from MarketMilk
EUR Weekly Performance from MarketMilk

European Headlines and Economic data

Monday:

Service sector weighs on eurozone economy in September

German business activity almost stagnates in September as round loses further momentum

France sees first contraction in service sector business activity in four months

Volume of retail trade up by 4.4% in euro area; Up by 3.8% in EU

EU current account surplus €82.9B; €24.8B surplus for trade in services

Euro zone investor morale deteriorates in October, Sentix says

Tuesday:

EU says that no-deal Brexit becoming ever more likely

ECB’s Christine Lagarde: Coronavirus cases putting recovery at risk

Eurozone construction activity falls further in September

German construction PMI falls to three-month low in
September

ECB’s De Cos does not rule out extension and increase of ECB support measures

Bank of Spain warns crisis might be deeper than worst-case scenario

German industrial orders rose at a ‘remarkable pace’ in August

ECB must ensure return to inflation goal after pandemic, Lane says

French Economic Rebound Grinds to a Halt as Virus Crushes Growth

Wednesday:

German Industrial Production in August 2020: -0.2% m/m

French Trade Balance remains at a -7.7B euro deficit in August

Italian Retail sales fell by -7.2% y/y by value in July 2020

ECB’s Lagarde pledges no premature removal of monetary aid

Thursday:

German exports were up +2.4% m/m in August 2020

ECB Monetary Policy Meeting Accounts for September 2020

EU’s Michel says Brexit talks facing moment of truth

Friday:

In France, industrial production increased by 1.3% month-on-month in August after 3.8% in July.

According to Istat’s release, seasonally-adjusted production was up 7.7% month-on-month in August (+7.0% MoM in July)

Brexit deal close but EU seeks more before starting final talks

The Swiss Franc

Overlay of CHF Pairs: 1-Hour Forex Chart
Overlay of CHF Pairs: 1-Hour Forex Chart
CHF Weekly Performance from MarketMilk
CHF Weekly Performance from MarketMilk

Swiss Headlines and Economic data

Tuesday:

Broad risk aversion sentiment during the U.S. session after U.S. President Donald Trump halted Covid-19 relief aid talks until after election, which was likely the catalyst for the pick up in volatility and price gains against the “risk” currencies like the comdolls.

Wednesday:

Swiss National Bank foreign currency reserves rises to 874B in September vs. 848B in August

The euro and franc topped out for the week against the risk currencies after  U.S. President Donald Trump reversed on his call to end work on a stimulus package, calling for Congress to aid the U.S. airline industry.

Thursday:

The Swiss unemployment rate fell from 3.3% in August 2020 to 3.2% in September 2020. The unemployment rate increased by 49.9% y/y