The euro and franc were net losers this week thanks to another round of positive global risk sentiment and counter currency flows.
This is despite the euro getting some love this week after the announcement of the Franco-German EU recovery plan.
Risk sentiment drivers are covered in the the Swiss franc recap.
European Headlines and Economic data
ECB’s Lane: Euro zone economy won’t hit pre-crisis level until 2021 at earliest
ECB’s Lagarde cheers Franco-German EU recovery fund plan
ECB’s Lagarde Says QE to Continue Despite German Court Ruling
What’s The Franco-German Recovery Plan All About?
EU must focus on health & jobs now, fiscal matters later: Commission
March 2020 the current account of the euro area recorded a surplus of €27 billion, compared with a surplus of €38 billion in February 2020
Euro zone April inflation revised down to nearly four-year low
Eurozone consumer confidence improves in May
The Swiss Franc
Swiss Headlines and Economic data
Global risk sentiment started the week in the “on” position thanks to several catalysts: Moderna reports positive data on early-stage coronavirus vaccine trial, weekend comments from Fed Chair Powell to reiterate unlimited stimulus support, positive signs of the global economy returning to pre-covid levels. This was likely the reason for the euro and franc under performing against the higher-yielding major currencies through the Thursday session.
Both the euro and franc moved lower during the Thursday London session, likely on another round of negative European PMI data, despite risk sentiment shifting negative on more U.S.-China tensions (White House report criticizes China’s economic policies, human rights violations).
The franc was able to bounce a bit during the Asia session as risk sentiment continued in negative mode, once again U.S.-China tensions (China Will Fight Back if U.S. Intervenes in Hong Kong, Beijing Warns)