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EURGBP TECHS

Still In Consolidation Mode

EUROZONE

Timeline of key events (Times GMT)

GBPUSD TECHS

Bullish Price Sequence Intact

EURUSD TECHS

Trend Outlook Remains Bullish

EUROSTOXX50 TECHS

(H2) Remains Above Key S/T Support

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  • The worsening outlook amid rising Covid uncertainty has been weighing on the Euro in recent weeks (relative to the Swiss franc).
  • EURCHF fell below its March 2020 low of 1.0580 last month and tested a local low at 1.0374 on Monday.
  • Historically, CHF appreciation has been an issue for SNB policymakers as a strong franc (vs. Euro) has been generally associated with a fall in Swiss inflation.
  • The surge in fuel and food prices this year has been supporting Swiss inflation, leading to a significant divergence between the two times series (EURCHF and Swiss CPI, see chart).
  • However, will the CHF strength drag down Swiss CPI in the medium term when inflationary pressures start to ease globally?

Source: Bloomberg/MNI