EURCHF Analysis: Getting ready to publish macroeconomic statistics

February 28, 2020

By IFCMarkets

Getting ready to publish macroeconomic statistics

Such a movement means strengthening of the unified European currency against the Swiss franc. According to interest-bearing futures, the likelihood of a 0.1% reduction in the ECB rate at a meeting on July 16, 2020 is over 80%. At the same time, the Fed rate cut is expected to reach up to 0.25% on April 29th. Now the ECB rate is zero, and the Fed + 1.75%. Nevertheless, the difference in expectations of lowering the rates of both regulators caused a noticeable appreciation of the euro. On Friday, new data on inflation and the German labor market will be released, which may affect the euro. The rate of Swiss National Bank (SNB) since March 2015 is negative and now stands at (-0.71%). SNB board member Andrea Maechler said negative rates are absolutely necessary for the Swiss economy, even if they have a painful effect. Thus, the Swiss authorities are struggling with the extreme strengthening of the franc. KOF indicator and retail sales data will be released in Switzerland on Friday.

Indicator VALUE Signal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Neutral

 

Summary of technical analysis

Order Buy
Buy stop Above 1.068
Stop loss Below 1.055

Market Analysis provided by IFCMarkets