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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
Overlay of EUR Pairs: 1-Hour Forex Chart
EUR Weekly Performance from MarketMilk
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
Overlay of CHF Pairs: 1-Hour Forex Chart
CHF Weekly Performance from MarketMilk
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 on boosted by headlines that the U.S. is looking to take action against China like new tariffs.