Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Euro zone corporate lending slumps from post-crisis maximum
In June, surge in bank loans to euro zone corporations decreased abruptly, though household lending kept to a post-crisis maximum and a major money supply indicator, normally predicting future economic activity, strengthened, as European Central Bank data demonstrated on Thursday.
In June, corporate lending in the 19-country currency bloc went up by 2.1%, a huge slowdown from last month’s 2.5%, when surge was at its most impressive pace since 2009.
The European Central Bank doesn’t put much value on single data points. Nevertheless, the slowdown might worry policymakers because the rebound in lending had been a firm indicator of the revival as well as the effectiveness of ultra-easy monetary policy.
Meanwhile, in June, lending to households ascended by 2.6%, unchanged from last month, when it demonstrated its best pace since March 2009.
The previous month, the annual surge rate of the M3 measure of money, which circulates in the euro zone, and predicts economic activity, rallied to 5% from May’s outcome of 4.9%, which fits expectations for 5% in a Reuters survey.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.