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Mostly choppy, sideways action for both the euro and franc this week as traders balanced a slew of catalysts and themes, including uncertainty with Brexit and coronavirus cases, mixed economic updates from Europe, and counter currency flows. 

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

Headlines and Economic data

Monday:

ECB Should Maintain Significant Monetary Stimulus, De Cos Says

ECB’s Visco says euro’s strength is a worry

Britain, EU start key week of Brexit talks with ‘better mood music’

EU says positions on Brexit ‘far apart’, talks must quicken

Germany to issue 6 billion euros more debt than planned in fourth quarter due to coronavirus

ECB Officials Ready for Clash of Clans on Next Stimulus Move

Tuesday:

German expected inflation rate for September 2020: -0.2%

Spanish flash CPI estimate for September: -0.4% y/y

Spain extends COVID furlough scheme to January

Wednesday:

German employment up 0.0% m/m in August 2020

German Retail turnover in August 2020: 3.1% m/m

French consumer spending climbs in August as shoppers splurge in sales

Italian CPI in September 2020: -0.6% m/m, -0.5% y/y

German unemployment rises +0.1% to 6.4%

ECB to Consider Inflation Overshoot in Echo of Fed Strategy

Thursday:

In August 2020, Industrial producer prices were up by 0.1% m/m in euro area; Up by 0.2% m/m in EU

Euro area unemployment at 8.1%; EU at 7.4%

Marginal growth in Spanish manufacturing sector in September

French manufacturing output continues to recover during September

Germany Manufacturing PMI climbs to 26-month high, showing recovery still firmly on course

Eurozone manufacturing growth strongest for over two years

Euro zone banks must brace for profit hit: ECB

UK-EU trade talks conducted in constructive spirit, says UK PM’s spokesman

Continued euro strength could hurt growth, slow inflation: Commission

EU’s Barnier says Brexit divorce deal an ‘absolute priority’ for EU

Friday:

Euro zone inflation will remain negative this year: ECB’ de Guindos

Euro area annual inflation down to -0.3%

Spain’s labour market improves despite new COVID-19 wave

Household saving rate at record high at 24.6% in the euro area while household investment rate at record low at 7.9%

EU wants Brexit deal, but not at any price, says Commission chief

Mid-October still goal for EU trade deal, says UK PM’s spokesman

The Swiss Franc

Overlay of CHF Pairs: 1-Hour Forex Chart
Overlay of CHF Pairs: 1-Hour Forex Chart

Headlines and Economic data

Through Monday and Tuesday, there weren’t many moments of uniform moves between Swiss franc pairs, and with risk sentiment broadly leaning positive (we saw a technical rebound in risk assets after last week’s global market sell off), it’s likely the franc’s price action was mostly dominated by counter currency flows.

Wednesday:

Swiss leading indicator hits 10-year high as rebound continues

SNB Quarterly Bulletin Q3 2020:

  • Swiss National Bank maintains expansionary monetary policy
  • The inflation forecast for the current year remains negative (– 0.6%)
  • GDP is set to shrink by around 5% in 2020, the biggest decline since the crisis in the mid-1970s.
  • Between the assessments of June and September 2020, sight deposits at the SNB averaged CHF 695.9 billion.
  • The real external value of the Swiss franc is still high.

Thursday:

Swiss retail trade grew by 1.6% m/m in August 2020

Swiss Consumer prices remained stable in September

Swiss PMI September 2020: Labor market situation remains tense despite dynamic recovery

Friday:

The Swiss franc popped higher during the Asia session as traders ran to safety after U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19, increasing the uncertainty of the upcoming U.S. Presidential election.