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The euro and Swiss franc were once again net out performers this week as the bulls took advantage of counter currency weakness and uncertainty with the global growth outlook as coronavirus cases rise.

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:

Euro zone economy not yet out of danger from coronavirus: ECB’s Panetta

EU’s Barnier confident deal with Brexit Britain is possible

German Ifo Index: 90.5 points in July vs. upwardly revised 86.3 points in June

French jobless total drops in June: labour ministry

Helped by fiscal boost, German economy seen rebounding: Bundesbank

Tuesday:

Spain jobless level hits 15.3% in second quarter

European Central Bank extends bank ban on dividends and stock buybacks

Wednesday:

German Import prices in June 2020: -5.1% on June 2019

New French Europe minister – Brexit deal possible but not ‘at any price’

ECB’s Stournaras Says Virus Bond-Plan Exit Depends on Inflation

Thursday:

German GDP in the 2nd quarter of 2020 down 10.1% q/q

German Preliminary CPI read for July 2020 -0.1% m/m

German employment change in June 2020: -0.1% m/m, -1.3% y/y

Estimated Spanish CPI for July: -0.6% y.y

Friday:

French GDP dropped at the fastest rate in history, contracting 14% in the second quarter

Euro zone GDP plunged by a record 12.1% in the second quarter

Spain in recession as GDP tumbles by 18.5%

French consumer spending shoots back above pre-lockdown level in June

Italy’s GDP slumps unprecedented 12.4% in second quarter

Euro area annual inflation up to 0.4%

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:

Gold price hits record high on new fears for the economy – traders ran to safe haven assets and low-yielders (like the euro) as COVID-19 cases surge in recent weeks. The Swiss franc didn’t immediately benefit from this broad risk sentiment on Monday; was the SNB intervening in the FX markets then?

Tuesday:

Negative risk sentiment was the likely driver for the franc’s uniform move higher during the London session, likely on uncertainty remaining on whether or not we’ll see a stimulus package from the U.S. government.

Wednesday:

The franc and euro sees gains early in the U.S. session with no apparent direct catalyst. This may have been a product of U.S. dollar weakness, sparked by rising COVID-19 cases in the U.S., a likely dovish Fed statement and no signs of a U.S. stimulus bill passing ahead.

Thursday:

KOF Swiss economic barometer for July: 85.69 vs 60.65 in June

We saw a round of negative risk sentiment as the U.S. pumped out a record negative GDP update and disappointing unemployment numbers, but the franc ended the session mixed as counter currency flows were the likely driver for price action.

Friday:

Swiss retail trade turnover rose 0.4% m/m in June 2020