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There was no love for the euro or the Swiss franc despite better-than-expected economic updates from Europe, suggesting no-deal Brexit fears may have been the big theme of the week.

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:

ECB’s Lagarde shifts burden to governments to aid recovery

Industrial production up by 4.1% in both euro area and EU Down by 7.7% and 7.3% compared with July 2019

EU to delay euro clearing decision on Brexit divorce threat

ECB’s Makhlouf sees continued fall in prices during pandemic

Tuesday:

German ZEW investor sentiment rises despite Brexit, COVID-19 headwinds

Annual growth in labour costs at 4.2% in euro area; 4.1% in EU

Wednesday:

Chances of Brexit deal fading every day, EU Commission chief says

Euro area international trade in goods surplus €27.9 bn; €25.8 bn surplus for EU

ECB’s Holzmann says low rates harmful in long term

Thursday:

Annual inflation down to -0.2% in the euro area; Down to 0.4% in the EU

EU’s Barnier still hopes trade deal with Britain possible, sources say

Friday:

German Producer prices in August 2020: -1.2% on August 2019

In July 2020 the current account of the euro area recorded a surplus of €17B, compared with a surplus of €21B in June 2020.

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

Tuesday:

Swiss Producer and Import Price Index fell in August 2020 by 0.4%

Wednesday:

Strong turn lower in the franc during the U.S. session, likely moving lower as broad risk sentiment rose ahead of the FOMC statement. It’s also possible that the rising probability of a no-deal Brexit scenario is putting pressure on the euro and franc.

Thursday: 

August 2020: For the first time since March, exports exceeded the 18 billion franc mark – This resulted in a trade surplus of CHF 3.4B.

Friday:

We saw a round of net weakness in the Swiss franc despite broad negative risk sentiment during the Friday session (thanks to a combination of scenarios ranging from a low expectancy of a new stimulus package from the U.S. government, the possibility of the U.K. locking down once again, and as the U.S. tech sector continues to fall), suggesting counter currency flows and Brexit fears were the main drivers for the lean lower in the franc.