No major catalysts from the Euro area meant that traders in both the euro and franc deferred to counter currency flows and risk sentiment in a relatively quiet week.
European Headlines and Economic data
- German Service sector sees positive end to 2019
- Eurozone economy remains close to stagnation at end of 2019
- Sentix Investor confidence surprises with a 7.6 read in Jan. vs. 0.7 in Dec. 2019
- Industrial producer prices up by 0.2% in euro area; Up by 0.1% in EU28
- Spain gets coalition government after Sanchez wins parliamentary vote
- Euro zone inflation picks in December before early 2020 fall
- Volume of retail trade up by 1.0% in euro area; Up by 0.6% in EU28
- Full UK-EU trade deal ‘impossible’ by deadline – von der Leyen
- New orders in German manufacturing had decreased in November 2019 a seasonally and calendar adjusted 1.3% on the previous month
- French foreign trade deficit reached 5.4 billion euros in November 2019 against 5.3 billion in October
- German Exports in November 2019: -2.9% on November 2018
- EU’s Barnier says a year not enough to agree full deal with UK
- EU is still planning for no-deal Brexit, says Michel Barnier
- French industrial production beats forecasts; +0.3% vs. +0.5%
- Italian industrial production inches upwards; +0.1% vs. -0.3% previous
The Swiss Franc
Swiss Headlines and Economic data
- The KOF Economic Barometer rises by 3.8 points in December from 92.6 (revised from 93.0) to a value of 96.4.
- The Swiss CPI remained stable in December 2019 compared with the previous month at 101.7; average annual inflation of +0.4% in 2019
- A relatively big spike in volatility on geopolitical events after Iran fired missiles at U.S. bases in Iraq. This sparked a risk-off move in the global markets (i.e., the Swiss fran rallied), but sentiment quickly shifted 180 degrees not too long after the attack after Iran announces it was not seeking further escalation. Market fears continued to fade into the weekend as the risk of further escalation did continue to decline through the rest of the week.
- Market fears continued to fade into the weekend as the risk of further U.S.-Iran military escalation did continued to decline, and likely the theme behind the franc’s slow grind lower through out the Friday session.