As financial markets have calmed down over the past few sessions amid hopes for more central bank stimulus across the globe, the Euro has started to stabilize at strong support levels. Economic data this morning will feature German PPI which is anticipated to show the absence of inflationary pressures as well Eurozone Construction Output which is likely to show further economic stress. The ECB is planning what type of stimulus to apply to the economy and when, but forex traders have already priced in a dovish ECB. Will the EURCHF rally off of support levels as the Swiss National Bank will join the interest-rate cut chorus soon? Get your trading set-up now at PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders.

Economists expected the Swiss trade balance for July to print a surplus, but smaller as compared to June’s surprise increase which was the strongest in two-and-a-half years. Despite the slowing global economy, the US-China trade war and Switzerland’s own dispute with the slowing Eurozone, the Swiss economy has outperformed the continent. This added to the capital inflow into the Swiss Franc, one of the forex market’s safe have currencies, and prompted speculation that the Swiss National Bank may cut interest rates in order to limit the negative impacts of a strong Swiss Franc on its export oriented economy. How will this impact the EURCHF? Today’s fundamental analysis will take a look if price action has more room to the downside and what the upside potential is.