The EUR/CHF Decline Shows Uncertainty in Markets - Forex News by FX Leaders
The bearish trend continues for EUR/CHF

The EUR/CHF Decline Shows Uncertainty in Markets

Posted Friday, August 6, 2021 by
Skerdian Meta • 1 min read

The Eurozone economy went through a second recession last winter, due to the new restriction and lockdown, after the first recession earlier in 2020. Although, in recent months we have seen a major improvement in the Eurozone economy after the reopening, with manufacturing and services surging higher. Although, the Euro has turned weaker instead of running higher, as a result of uncertainty.

CPI (consumer price index) inflation is stagnating around 1%, with the core number even lower, while the continent is vulnerable to further restrictions, come autumn. The CHF is benefiting as a safe haven from the uncertainty, together with the JPY.  The 20 SMA (gray) has been working as support for EUR/CHF, also confirming the negative outlook for this pair. The German industrial production was expected to turn positive and increase by 0.6%, after 4 declines in the last 5 months.

EUR/CHF Live Chart

EUR/CHF

Germany June Industrial Production Report

  • Germany June industrial production MoM -1.3% vs +0.5% expected
  • May industrial production was -0.3%
  • Industrial production WDA YoY +5.1% vs +11.0% expected
  • Prior +17.3%; revised to +16.6%

A miss on German factory output in June and that’s not too encouraging as hard data fails to live up to expectations of a more robust performance in the manufacturing sector.

Compared with February 2020, production in June was 6.8% lower. That provides some idea of how industrial output is faring despite the more positive tones as of late.

 

 

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments