Forex News

23:07:15 01-12-2023

EUR/CHF chalks in a third straight day of losses as Euro declines into 0.9450 against the Swiss Franc

  • The EUR/CHF is down in a three-day bear binge.
  • Euro chart action is decidedly one-sided as the EUR falls back across the board on the week.
  • Next week sees Eurozone PPI, GDP growth.

The EUR/CHF is down eight-tenths of a percent heading into the Friday closing bell as the Euro (EUR) declines for a third consecutive trading day against the Swiss Franc (CHF). The EUR/CHF is down 2% on the week, tumbling into 0.9450.

The Euro is seeing accelerating losses as markets lose faith in the Eurozones economy, with inflation slumping faster than markets were anticipating and a firmly-dovish European Central Bank (ECB) already looking at the possibility of bringing quantitative easing back into the fold.

ECB's President Lagarde: Central bank to discuss QT in the not too distant future

ECB President Christine Lagarde hit newswires this week admitting that the ECB is likely to begin discussing easing programs soon, and the hat-tip to loosening monetary policy has sent the Euro skidding. The EUR is down for the week against every other major currency, sending the EUR/CHF down in one-sided trading from Mondays early high of 0.9662.

European inflation missed the mark on market expectations, with Eurozone Harmonized Index of Consumer Prices (HICP) printing at -0.5% in the MoM figure, with the Core HICP YoY headliner coming in at 3.6% against the forecast 3.9%, declining even further from the previous periods 4.2% print.

Swiss Gross Domestic Product (GDP) came in mixed on Friday morning, with the QoQ beating market expectations to print at 0.3% compared to the median market forecast of 0.1%, while the previous quarters 0.0% saw a downside revision to -0.1%.

Annualized Swiss GDP also saw a miss on the calendar, coming in at 0.3% compared to the markets expected 0.5%, and the previous period also saw a downside revision from 0.5% to 0.3%.

Next week leans notably heavy into the Euro side, with another appearance from ECB President Lagarde on Monday, followed by Eurozone Producer Price Index (PPI) figures on Tuesday. European investors will also be keeping an eye out for the Eurozone GDP print, slated for Thursday and forecast to show a -0.1% print for the third quarter.

EUR/CHF Technical Outlook

The EUR/CHFs chart action this week has been notably one-sided, tumbling back into Octobers lows near 0.9450 in only three days, falling from a near-term swing high at 0.9680.

Long-term momentum in the EUR/CHF continues to be capped off by a bearish 200-day Simple Moving Average (SMA) declining into the 0.9700 handle.

The EUR/CHF is down nearly 2.5% from Novembers peak bids at 0.9685.

EUR/CHF Daily Chart

EUR/CHF Technical Levels

 

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