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Despite big stimulus measures coming from the European Central Bank and the Swiss National Bank, global risk sentiment and counter currency flows were the name of the game for euro and franc traders this week, resulting in a mixed performance for both.

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:

Tuesday:

Wednesday:

Thursday:

Friday:

  • Again, risks sentiment and counter currency flows were the main driver for the euro, which rose against a falling U.S. dollar (massive Fed & U.S. government stimulus end the Greenback rally) and safe havens yen and Swiss franc, as well as the Loonie (due to rate cuts and falling oil prices). The massive stimulus measures from around the globe stemmed the extreme negativity seen over the past couple of weeks, prompting some give back in the weakness in the Aussie, Kiwi, and British pound against the euro.

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

Monday:

Tuesday:

Wednesday:

  • Swiss National Bank sets up covid-19 refinancing facility
    • “The facility will have no upper limits on the amounts available and will be available from March 26”
  • Swiss National Bank Quarterly Bulletin
    • Swiss National Bank maintains expansionary monetary
      policy, raises negative interest exemption threshold,
      and is examining additional steps
    • In this pandemic environment, the global economic outlook is
      extremely uncertain. Pronounced economic declines are to
      be expected in the first half of 2020.
    • Due to the rapid spread of coronavirus, the short-term
      outlook has worsened markedly for Switzerland. Swiss GDP growth is likely to be negative for the year as a whole
    • With the Swiss franc appreciating in nominal terms, its real external value also increased and, in February, reached levels similar to those last seen in August 2019. In a longer-term comparison, the Swiss franc is highly valued.

Thursday:

Friday:

  • Risk sentiment soured a bit on Friday, possibly on traders fearing that the U.S. stimulus bill may hit a snag in the House and on the continued acceleration of cases around the globe. But we saw a flip in sentiment by the U.S. session after the stimulus bill was later passed and signed by President Trump in the afternoon session, which was likely the catalyst for the franc’s big out performance against the Greenback and fall against AUD, NZD, & GBP going into the weekend.