Despite broad risk sentiment being generally negative all week, both the euro and Swiss franc were net losers as traders likely focused rising COVID-19 cases, rising odds of lockdowns returning to Europe, and continued Brexit uncertainty.
Price action was rarely uniform for either currency, suggesting counter currency flows were also a major factor in relative performance this week.
There were no major headlines from Switzerland between Monday through Thursday, but risk sentiment was generally negative due to rising coronavirus cases and fears of renewed lock downs.
Unfortunately for franc and euro bulls, this wasn’t supportive as most of the fears were focused on Europe where various countries were seeing record numbers. This was likely the reason for the atypical behavior of euro and franc weakness during a risk aversion environment, only gaining against the Kiwi and Aussie by the close of the week.
Overall, the monetary policy statement came in as expected and likely contributed to the intraweek trend lower in the Swiss franc.
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