Bad data from Europe? Dovish commentary from the European Central Bank? No problem for EUR & CHF bulls!
Both currencies outperformed the rest thanks to a round of negative global risk sentiment at the end of the week.
The Euro
Overlay of EUR Pairs: 1-Hour Forex Chart
EUR Weekly Performance from MarketMilk
European Headlines and Economic data
Monday:
Germans don compulsory masks as lockdown eases
Spain eyes more easing of coronavirus lockdown after children reclaim streets
Tuesday:
Virus-hit Spain’s jobless rate jumps to 14.4 percent
French consumer confidence sees record April fall
As Germany lockdown eases, spread of coronavirus worsens
French PM says it’s time to emerge from virus lockdown
Wednesday:
Expected German inflation rate for April 2020: +0.8%
German Import prices in March 2020: -5.5% on March 2019
Annual growth rate of adjusted loans to euro area households decreased to 3.4% in March from 3.7% in February
Thursday:
German employment up 0.2% y/y; 0.0% m/m
German Retail turnover in March 2020: -2.8% in real terms on March 2019
ECB says it’s ready to increase coronavirus stimulus as euro zone posts worst GDP since records began
Italy March jobless rate plummets as people give up search for work amid coronavirus crisis
GDP down by 3.8% in the euro area and by 3.5% in the EU
Euro area unemployment at 7.4%; EU at 6.6%
Euro area annual inflation down to 0.4%
Lagarde sees ECB in crisis mode until next year
Friday:
ECB here to close spreads after all, Lane says as economy shrinks
ECB says virus may hobble euro area growth until 2022
The Swiss Franc
Overlay of CHF Pairs: 1-Hour Forex Chart
CHF Weekly Performance from MarketMilk
Swiss Headlines and Economic data
Monday:
Swiss rush to get haircuts, visit dentists as coronavirus curbs ease
Swiss National Bank steps up forex purchases again, data shows
We saw a positive lean in global risk sentiment at the beginning of the week as more countries were looking at re-opening their economies. This was a likely contributor to weakness in both the euro and Swiss franc until the Thursday session.
Wednesday:
Swiss extend ban on events exceeding 1,000 people through August
Thursday:
Swiss retail trade fell in March 2020 as a result of the COVID-19 pandemic by a marked 6.2%
The KOF Economic Barometer declines in April to a level 63.5 points, comparable to the 2009 financial crisis
Both the euro and franc during the Thursday session, likely on rising negative risk sentiment starting in the London session on negative economic updates from Europe (GDP down by 3.8% in the euro area and by 3.5% in the EU), negative outlook from the ECB monetary policy statement, and possibly on some negative commentary from two of the largest companies in the world (Amazon and Apple) taking down U.S. equities.
Friday:
Both the euro and franc continued their rally during the Friday session on negative global risk sentiment, likely boosted by headlines that the U.S. is looking to take action against China like new tariffs.
