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Both the euro and the Swiss franc were top performers this week thanks to rising negative global risk sentiment and counter currency weakness, and possibly on improving business sentiment data from Europe as well.

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:

Germany Infection Rate Up With Surge in Meat, Refugee Facilities

Flash consumer confidence indicator recovered to a certain extent in both the euro area (+3.2) and the EU (+2.5)

ECB money-printing shouldn’t become ‘unbound’, says Weidmann

ECB’s de Guindos sees risk of reopening too soon after lockdown

Tuesday:

Flash Eurozone Manufacturing PMI at 46.9 vs. 39.4 in May

Flash Germany Manufacturing PMI at 44.6 vs. 36.6 in May

Flash France Manufacturing PMI at 52.1 in June vs. 40.6 in May

Wednesday:

German Ifo business climate index surged to 86.2 in June from 79.7 in May

The U.S. is considering $3.1 billion in new tariffs on products from France, Germany, Spain and the UK – this was likely the catalyst for the uniform move lower in the euro against the majors on the session, given that broad risk sentiment was moving more negative after more news of  of rising covid cases and a negative global economic outlook call by the International Monetary Fund.

Thursday:

German consumer sentiment set to rise in July

ECB Sets Up New Backstop for Central Banks Outside Euro Area

ECB to release documents to defuse German court challenge

ECB can hold back on bond buys if markets calm, Mersch says

Friday:

Annual growth rate of broad monetary aggregate M3 increased to 8.9% in May 2020 from 8.2% in April (revised from 8.3%)

The ECB’s Christine Lagarde thinks the global economy is past the worst

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

There were no major headlines or catalysts from Switzerland to driver the Swiss franc, and price action was a choppy mess for most of the week, indicating counter currency flows were a bigger influence than even broad risk sentiment.

At the end of the week, however, the Swiss franc began to move broadly higher against the majors as global risk sentiment increasingly moved more negative. The catalyst was likely the continued focus and fears of rising coronavirus cases, especially in the U.S. as states started moving back into lockdown mode. It was on this theme that the Swiss franc accelerated higher during the Friday trading session, to take the top spot against the major currencies for the week.