EUR/CHF chains its third consecutive day of losses

• The EUR/CHF pair has had three consecutive days of declines.
• The Euro charts show a one-sided trend, as it had a weekly decline.
• Next week the PPI and Eurozone GDP growth will be published.

The pair EUR/CHF retreats at Friday’s close, as the Euro (EUR) falls for the third consecutive day against the Swiss Franc (CHF). During the week, the EUR/CHF pair fell 2% and stood at 0.9450.

The Euro’s losses are accelerating as markets lose faith in the Eurozone economy, with inflation falling faster than expected and a very moderate European Central Bank (ECB), which is already contemplating the possibility of returning to quantitative easing.

ECB President Christine Lagarde admitted this week that the ECB is likely to begin discussing quantitative easing programs soon, and the allusion to easing monetary policy has caused the Euro to collapse. On the week, the Euro has fallen against the other major currencies, and the EUR/CHF pair has fallen in a one-sided trade from Monday’s initial high of 0.9662.

European inflation disappointed market expectations: the Eurozone Harmonized Consumer Price Index (HICP) stood at -0.5% month-on-month, while the core HICP stood at 3.6% year-on-year, compared to 3.9% expected, which represents an even greater decrease compared to the 4.2% of the previous period.

Swiss Gross Domestic Product (GDP) delivered mixed results on Friday morning, with the quarter-on-quarter figure exceeding market expectations and standing at 0.3%, compared to the average market forecast of 0.1%, while 0.0 % of the previous quarter was revised downwards to -0.1%.

Annualized Swiss GDP also disappointed expectations, coming in at 0.3%, versus 0.5% expected by the market, and the previous period was also revised downwards, from 0.5% to 0.3%.

Next week leans especially on the side of the Euro, with another appearance by Lagarde, president of the ECB, on Monday, followed by the Eurozone Production Price Index (PPI) figures on Tuesday. European investors will also be keeping an eye on Eurozone GDP figures, due out on Thursday and expected to return -0.1% for the third quarter.

EUR/CHF Technical Outlook

This week, the EUR/CHF pair has moved off the October lows near 0.9450 in just three days and has fallen from the short-term high of 0.9680.

Long-term momentum in EUR/CHF remains limited by a bearish 200-day simple moving average (Kagi) falling to the 0.9700 area.

EUR/CHF is down almost 2.5% from November bid highs at 0.9685.

EUR/CHF Daily Chart

EUR/CHF technical levels