European Headlines and Economic data
ECB Signals September to Be Key Month to Read the Economy – there is still too much uncertainty on whether or not the broad economy is truly recovering after lockdown measures were eased. This event seems to correlate with a pick up in broad euro selling against most of the majors.
Flash Eurozone PMI Composite Output Index at 51.6 in Aug. vs. 54.9 in July, mainly driven by a drop in the services sector – spike lower in the euro after this disappointing read on business sentiment, and likely on disappointing news on the Brexit front (EU, Britain trade blame after scant progress towards post-Brexit deal, EU’s Barnier says little progress in latest talks with UK)
The Swiss Franc
Swiss Headlines and Economic data
With no major drivers from Switzerland and broad risk sentiment move generally muted, the broad move lower through Monday and Tuesday in the franc was likely driven by the euro, which as described above, likely driven by fresh headlines of COVID-19 cases spiking in Europe.
A strong move lower in the Swiss franc against the majors starting in the morning London session. With no major drivers apparent from Switzerland. This may have been driven by broad U.S. dollar strength ahead of the FOMC meeting minutes and/or broad euro weakness as pandemic fears grew.
The broad move lower in the franc against many of the majors during the London trading session was likely a move with the euro, falling after disappointing business sentiment and Brexit updates came out from Europe.