020 7898 0500Ambitious economic projections and the prospect of a full-blown trade war with the US have led to several pieces of disappointing economic data coming from Germany and the eurozone. Today we will have an indication of how well the composite, manufacturing and services sectors performed in July with the release of PMI data.
Every reading is expected to come in lower than the month before, but the losses are forecast to be minimal. If any of them disappoint then we could see some euro weakness. On the other hand, perhaps the sectors can surprise on the upside and boost the single currency.
Whichever it is, we will know by 9am and the markets will react accordingly soon after. The big release this week is the European Central Bank’s interest rate decision and although rates will be kept on hold this time around, it will be interesting to see if policymakers change the course of the sentiments they have been expressing over the past few months.
