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.
European Headlines and Economic data
The Swiss Franc
Swiss Headlines and Economic data
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.
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 vaccine, J&J eyes one billion doses of potential COVID-19 shot in 2021) that had traders running away from safe haven assets.
The Swiss franc had a strong upside move on the session, likely shadowing the euro higher after improving European industrial production data.
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.