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
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
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
