The euro and Swiss franc took an early lead on Monday with better-than-expected (but still contractionary) business sentiment data from Europe, which was enough to weather the negative European economic updates, continued Brexit uncertainty, and counter currencies flows.
Global risk sentiment was on the rise as traders stayed optimistic on a U.S. stimulus package, which did put pressure on the negative yielding currencies, but not enough to take away their net positive performances for the week.
The Euro
European Headlines and Economic data
Monday:
Service sector weighs on eurozone economy in September
German business activity almost stagnates in September as round loses further momentum
France sees first contraction in service sector business activity in four months
Volume of retail trade up by 4.4% in euro area; Up by 3.8% in EU
EU current account surplus €82.9B; €24.8B surplus for trade in services
Euro zone investor morale deteriorates in October, Sentix says
Tuesday:
EU says that no-deal Brexit becoming ever more likely
ECB’s Christine Lagarde: Coronavirus cases putting recovery at risk
Eurozone construction activity falls further in September
German construction PMI falls to three-month low in
September
ECB’s De Cos does not rule out extension and increase of ECB support measures
Bank of Spain warns crisis might be deeper than worst-case scenario
German industrial orders rose at a ‘remarkable pace’ in August
ECB must ensure return to inflation goal after pandemic, Lane says
French Economic Rebound Grinds to a Halt as Virus Crushes Growth
Wednesday:
German Industrial Production in August 2020: -0.2% m/m
French Trade Balance remains at a -7.7B euro deficit in August
Italian Retail sales fell by -7.2% y/y by value in July 2020
ECB’s Lagarde pledges no premature removal of monetary aid
Thursday:
German exports were up +2.4% m/m in August 2020
ECB Monetary Policy Meeting Accounts for September 2020
EU’s Michel says Brexit talks facing moment of truth
Friday:
In France, industrial production increased by 1.3% month-on-month in August after 3.8% in July.
Brexit deal close but EU seeks more before starting final talks
The Swiss Franc
Swiss Headlines and Economic data
Tuesday:
Broad risk aversion sentiment during the U.S. session after U.S. President Donald Trump halted Covid-19 relief aid talks until after election, which was likely the catalyst for the pick up in volatility and price gains against the “risk” currencies like the comdolls.
Wednesday:
Swiss National Bank foreign currency reserves rises to 874B in September vs. 848B in August
The euro and franc topped out for the week against the risk currencies after U.S. President Donald Trump reversed on his call to end work on a stimulus package, calling for Congress to aid the U.S. airline industry.
Thursday:
The Swiss unemployment rate fell from 3.3% in August 2020 to 3.2% in September 2020. The unemployment rate increased by 49.9% y/y
This post first appeared on babypips.com
