fbpx

EUR & CHF Weekly Review (Nov. 2 – 6)

EUR & CHF Weekly Review (Nov. 2 – 6)

The euro eeks out a net gain against the majors while the Swiss franc takes an “L” in a mixed week. The euro’s gains came mainly against the safe have

Daily U.S. Session Watchlist: AUD/CHF
USD Weekly Forecast – NFP and Powell’s Week!
Daily U.S. Session Watchlist: GBP/CAD

The euro eeks out a net gain against the majors while the Swiss franc takes an “L” in a mixed week. The euro’s gains came mainly against the safe havens, suggesting that price action was mainly driven by this week’s risk-on lean in the financial markets. European economic updates were arguably net positive, and may have been a factor in the euro’s gains against some of the majors as well. 

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:

IHS Markit Eurozone Manufacturing PMI: 54.8 in October vs. 53.7 in September

German Manufacturing continues to bounce back as new orders show record increase

October sees modest improvement in French business conditions

Tuesday:

EU to consider escalating legal dispute with Britain over divorce treaty

Brexit talks fail to agree on fisheries, two other issues

Wednesday:

ECB likely to add new stimulus measures in December, ECB’s De Cos says

German Services activity slips back into contraction in October as second wave of coronavirus hits

Eurozone services business activity contracts at a faster pace in October: 46.9 vs. 48.0 September

French business activity falls in Oct as services weaken: PMI

Thursday:

Eurozone Construction activity falls further in October

German manufacturing new orders were up 0.5% m/m

Friday:

EU Commissioner Breton sees 50/50 chance of Brexit deal

German Industrial production rose 1.6% m/m in September 2020

Italian Retail trade decreased by -0.8% m/m in September 2020

French private payroll employment rebounded by 1.8% in Q3 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

Monday:

After an early positive start, likely due to rising pandemic fears and speculation of an economic slowdown on weekend news of the U.K. lockdown, the euro and franc turned lower on the session without an apparent catalyst. It could be argued that the generally positive PMI updates from Europe may have sparked some risk-on vibes on the session to steer traders away from safe have / lower-yielding currencies.

Tuesday:

Swiss consumer prices remained stable in October

Wednesday:

Big spike in volatility for both the euro and Swiss franc during the Asia trading session, highly likely driven by the U.S. election headlines from the U.S. as votes had started to be counted. Risk sentiment moved back and forth the flow as traders bounced back between fears of a long wait before we get the results, and false claims by Trump of winning the Presidential bid.

Thursday:

SECO Consumer Sentiment: -13 in Q3 2020 vs. -12 in Q2 2020

Another tumble for the franc during the London trading session as broad risk sentiment as flipped positive. This sentiment was likely on traders getting more confident that a Biden win could bring about a massive stimulus program and less regulatory risk in the U.S.

Friday:

The Swiss franc was able to bounce back during the Friday trading session, and with no major catalysts to change this week’s driving themes, and with volatility relatively low, it’s arguable that the week’s risk-on lean had run out of steam and/or suggested some profit taking ahead of the weekend.

This post first appeared on babypips.com

Do You Enjoy This Article?
Sign up for our newsletter and receive FREE access to download SuccessDigest Digital Weekly Edition for attainment of your financial freedom in the new digital economy!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

COMMENTS

WORDPRESS: 0
DISQUS:
%d bloggers like this: