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The euro and franc saw nothing but red as another fresh round of horrific business sentiment & economic updates from Europe had traders running.

It’s also likely that the slow re-opening of the global economy had traders looking away from low-yielder / safe-haven currencies to add to the pressure on both currencies.

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:

Spanish Manufacturing PMI sank to 30.8 in Apr. vs. 45.7 in Mar.

Italian Manufacturing PMI dropped to 31.1 in Apr. vs. 40.3 in Mar.

French Manufacturing PMI dropped to 31.5 in Apr. vs. 43.2 in Mar.

German Manufacturing PMI fell to 34.5 in Apr. vs. 45.4 in Mar.

Eurozone Manufacturing PMI fell to 33.4 in Apr. vs. 44.5 in Mar.

Euro zone investor morale improves but current situation at record low: Sentix

Global risk sentiment was tipping negative to the start of the week as global factory data disappointed around the world, so it’s likely euro traders were mainly focused on the selloff historically bad business sentiment data seen above to push the low-yielding currency lower.

Tuesday:

German court says the European Central Bank now needs to prove its bond buying is needed

Spanish unemployment increased by 282,891 people in the month of April m/m

Industrial producer prices down by 1.5% m/m in March in euro area; Down by 1.4% in EU

German court hands ECB three-month ultimatum to justify stimulus scheme – this was the other driver of the week for the euro, putting at risk the quantitative easing program that is supposed to support the European economy in this time of crisis.

Wednesday:

German factory orders was down -15.6% in March m/m

Eurozone economy services business activity index drops to 12.0, a record low

Decline in German business activity deepens to new record low in April

Contraction in French services activity deepens during April

Spanish service sector suffers unprecedented fall in activity

In March 2020, Volume of retail trade down by 11.2% in euro area; Down by 10.4% in EU

EU predicts region will contract 7.4% this year in worst economic shock since 1930s

ECB aims to fulfill mandate as interpreted by top EU court: Villeroy

Thursday:

German Industrial production fell -9.2% m/m in March, -11.6% y/y

ECB again calls for bigger role of fiscal policy in recession fight

German lawmakers turn sights on Bundesbank to get to ECB

No sign Britain wants EU trade talks to succeed – EU trade chief

Italy retail sales fall 20.5% month-on-month in March

Friday:

German Exports in March 2020: -7.9% y/y

Portugal’s exports and imports slump in March as pandemic bites

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

It looks like the franc’s price action mainly tracked the euro this week, with likely a bit of influence from somewhat positive global risk sentiment driving down demand for safe havens.

It was a battle between hopes of economic recovery as lockdown restrictions eased around the world versus horrific global economic data, and it looks like the former is winning out for now.

Monday:

Procure.ch Purchasing Managers’ Index (PMI) fell to 40.7 in April vs. 43.7 in March

Swiss National Bank keeps FX intervention at high level, data suggest

Tuesday:

SECO Consumer Climate fell from -9 points in January to -39

Swiss Consumer prices fell by 0.4% in April; -1.1% y/y