Economic Calendar This Week: Events this week

[fxcapitalvia]

Traders may overlook first-quarter Switzerland GDP figures as they defer to developments out of the U.S. and Europe. The US Dollar has strengthened to the highest level vs the Swiss Franc in 3-months. The move comes on the back of renewed strength in recent U.S. news-flow and the ECB hinting to ease monetary policy at its next June meeting. The Eurozone is Switzerland’s primary trade partner and international financial companion, so any monetary policy adjustments by the ECB may significantly impact the Swiss Franc. The correlation between USDCHF and EURUSD is close to -0.90 – meaning the currency movements of one mirrors the other, and at times to the same magnitude. Increasingly deteriorating news-flow out of Euro is mounting pressure on the ECB to ease monetary policy. ECB’s easy policy may be the fundamental driver that leads to Swiss Franc’s depreciation against the US Dollar – though renewed strength in the US Dollar may help drive the move further.