EUR/CHF Down 0.5% After Mixed Economic Data from Europe

EUR/CHF Down 0.5% After Mixed Economic Data from Europe

October 24, 2023


The EUR/CHF exchange rate has pushed back its Monday's gains. The Euro is down versus CHF by 0.5% as investors decided vastly to sell euros and/or buy Swiss francs. This came after some very mixed economic data from Germany and whole eurozone. The euro exchange rate has set a new low of 0.9417 for 2023 this past Friday. The EUR/CHF has been mostly declining, but steadily, since it has peaked at 1.0097 early this year.

Mixed Data from Germany

Germany’s preliminary Manufacturing PMI has went up to 40.7 in October versus 40.0 expected, but at the same time the headline Composite PMI has declined unexpectedly. The manufacturing sector in the country was still growing, but at moderate rate. Manufacturing PMI at 40.7 in October is ahead of September’s reading at 39.6. However still this number is well below a desired level 50.0.

Economic Data from EU

Whereas in the pan-EU economic data, most came in red and missing market estimations. The headline PMI Composite for October went down to 45.8, while the expectations were placed at 46.7 reading. It also means a further decline from the September’s level of 47.2. Purchasing manager expectations across the European Bloc's manufacturing sectors are expecting conditions will continue to deteriorate.

News to Look For

What is next for EUR/CHF exchange rate? While economic data are already published, investors will look ahead for news on Switzerland latest business expectation, that should be published on Wednesday. Then, on the same day, the speech by the European Central Bank (ECB) President Christine Lagarde will be delivered, likely sparking some actions among investors. Those trading of euros will be also keen to look at the ECB's latest rate call and Monetary Policy Statement landing on Thursday. The ECB is widely expected to keep their main reference rate on hold at 4.5%. The EU is struggling with an unstable domestic economy.

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