Euro Tumbles as Industrial Output Falls by Record, Swiss Franc Down Ahead of SNB Deci

The euros ended the day down against the greenback on Friday as the US currency staged a broad rebound across the majors. Fundamentals were also working against the euro, as Eurostat said that industrial production in the Euro-zone fell 1.9 percent during April, bringing the annual rate down to a record low of -21.6 percent and highlighting the impact of the global economic slowdown on export-reliant economies.

Meanwhile, the Swiss franc was one of the weakest major currencies on Friday, and it will face very high event risk next week. On Thursday, the Swiss National Bank is like to leave their 3-month LIBOR target range unchanged at 0.0 percent – 0.75 percent, but the thing to watch for in the SNB’s subsequent policy statement is talk of FX intervention. Indeed, the SNB’s last statement on March 12 indicated that the central bank wanted to “prevent any further appreciation of the Swiss franc against the euro” in an effort to “counter the risk of deflation and of a dramatic deterioration in the economy.” Similar comments have the potential to drive the Swiss franc lower upon this 3:30 ET release, while a neutral policy stance and no mention of currencies will likely lead the Swissie higher.