The electronic watch (1) indicates the time using two hands (2, 3). This electronic watch includes an electronic compass (10), a processing unit (13) with a microcontroller (15) for calculating the direction of North on the basis of detection signals provided by magnetic sensors of the compass. The watch also includes motorised means (16) driving the hands controlled by the processing unit in order to place the hands (2, 3) in a time mode, a selected direction mode or a selected compass mode, and a manual control member (4) connected to the microcontroller processing unit. This control member (4) can be manually activated in a selection position in order to perform selection from the time mode to the direction mode and/or to the compass mode. In the selected direction mode the control member (4) can be pulled out into a stable setting position for setting, via the two superposed hands (2, 3), a direction parameter of a pre-programmed geographical place as a function of the geographical place where the watch is located. In a selected compass mode, the two hands are positioned in opposition to indicate the direction of North.