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
- As for CHF pairs, moving averages place most in bullish territory, except for USD/CHF
