Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Euro zone heads north, but inflation slows
In the nearer week data should confirm the euro zone economy is going up, after the IMF upgraded surge forecasts and Greece got back to the debt market. Nevertheless, inflation figures could affect ECB plans to get down to tightening policy.
Surge in the single currency area dared to surpass paltry expansion in America and the United Kingdom during the first quarter and the pace didn’t cool in the April-June period.
The euro zone might not be surge champion in the second quarter, especially after the US economy rebounded to an annualized 2.6% due to consumer spending as well as business equipment investment.
Friday’s data unveiled that the euro zone's number two economy, France, added by 0.5% for a third successive quarter. Meanwhile, Spanish GDP got back to pre-crisis levels, offering a 0.9% expansion.
As compiled by the European Commission, in July, euro zone economic sentiment rallied for a third straight month, hitting a fresh 10-year maximum because of a pick-up of the prevailing services sector. As for confidence levels in all sectors, and for customers, they exceeded historical averages.
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.