It could be a quiet trading week for the euro and the franc, although a handful of key figures from the euro zone’s top economies might be worth watching.
Here’s what market watchers are looking at:
Euro zone mid-tier data
- German industrial production (Feb. 8, 7:00 am GMT) to show 0.1% uptick in December after earlier 0.9% gain
- German trade balance (Feb. 9, 7:00 am GMT) to print a narrower surplus from 16.4B EUR to 15.8B EUR in December
- Italian industrial production (Feb. 9, 9:00 am GMT) to indicate a 2.1% rebound after earlier 4.1% slide
- French industrial production (Feb. 10, 7:45 am GMT) to post 0.4% uptick after previous 0.9% drop
- EU quarterly economic forecasts (Feb. 11, 10:00 am GMT) to contain downgrades for growth and inflation?
Overall market sentiment
- The euro and the franc might once again take cues from risk appetite, as traders tend to favor these lower-yielding currencies when risk aversion is in play
- Updates on the vaccine rollout in Europe could also dictate price action for these currencies
Technical Snapshot
- Euro pairs are looking mixed based on Stochastic, which puts EUR/CHF in the overbought region
- EUR/NZD, EUR/USD, and EUR/GBP might be in for more gains as this oscillator shows oversold conditions for these pairs
- The euro has been most volatile against NZD in the past seven days, moving an average of 92.6 pips per day
Missed last week’s price action? Don’t forget to read the EUR & CHF Weekly Review for Feb. 1 – 5!
This post first appeared on babypips.com
