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It was an extremely light week of news and headlines from Europe, but both the euro and Swiss franc ended up as net winners. This was likely due to a combination of continued improving European sentiment and late week global risk aversion sentiment.

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:

The Sentix overall index for the eurozone economy climbed by +4.8 to -13.4 points

French economic activity runs 7% below normal level in July – Bank of France

German firms expect public life to be restricted for a further 8.5 months – Ifo

Tuesday:

Economic sentiment in Germany recovers in August: ZEW

Wednesday:

Industrial production up by 9.1% in both euro area and EU; down by 12.3% and 11.6% compared with June 2019

Thursday:

German Wholesale prices in July 2020: -2.6% on July 2019

German Inflation rate at -0.1% in July 2020

Germany: Optimistic we’ll have a vaccine in coming months and certainly next year

Friday:

GDP down by 12.1% and employment down by 2.8% in the euro area In the EU, GDP down by 11.7% and employment down by 2.6%

Euro area international trade in goods surplus €21.2 bn; €20.7 bn surplus for EU

Young people are driving a second, less-deadly surge of Covid-19 cases in Europe

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:

Swiss unemployment rate remained at 3.2% in July

We saw broad weakness for both the euro and franc to start the week, likely driven by global risk sentiment which was leaning positive off of better-than-expected Chinese data.

Tuesday:

Strong turn lower for both the franc and euro during the U.S. session on global risk sentiment once again. This time it on positive vaccine headlines (Russia has registered the world’s first coronavirus vaccineJ&J eyes one billion doses of potential COVID-19 shot in 2021) that had traders running away from safe haven assets.

Wednesday:

The Swiss franc had a strong upside move on the session, likely shadowing the euro higher after improving European industrial production data.

Friday:

The Swiss Producer and Import Price Index rose in July 2020 by 0.1% m/m

The Swiss franc and euro maintained their gains into the weekend, likely driven by broad risk aversion sentiment as the U.S. Congress fails to strike a deal on a new U.S. stimulus package, and possibly on low confidence that the recent rebound in economic activity is sustainable given the spike in coronavirus cases around the world.