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.
European Headlines and Economic data
The Swiss Franc
Swiss Headlines and Economic data
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?
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.
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.
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.