EUR/dollar looks at US and German GDP data

The peace and quiet that the early days of August provided begin trunkcarsThe macroeconomic agenda for the week is the best example of this: after the respite of the previous sessions, it is beginning to fill up with important appointments, such as Publication of GDP growth figures in Germany or the United States, Manufacturing PMI From a handful of countries such as France, Japan, Germany or the United Kingdom or from oil stocks.

The publication of all these references will be crucial for a market that has once again turned its eyes to the EUR/dollar. The development of the crossover between the two currencies has gained more relevance over the past few sessions. move closer to parity again (It arrived this Friday $1.0052 per euro) especially, after the heated debate brought to the table by the publication of the minutes of the last meeting of the Federal Reserve in the United States, which focused on the pace of the rise of the central entity. In value for money in the next rate meetings to be held.

At least for now The US dollar is gaining appeal for investors, To note The dollar is reflected in the evolution of the index, which includes the evolution of the American currency against a weighted basket of the most traded currencies on the planet.

And that’s the North American motto The registers advance by nearly 2.5% compared to the low marked in the same month of August After playing in one of his fastest weeks of the year. The dollar’s rally was linked to a series of comments from the Federal Reserve, which kept expectations for US interest rates high, near recent highs. This combination, when directly compared to deteriorating US economic conditions in Europe and China, brokers continue to prioritize the dollar. “, They indicate a company specializing in currency trading operations Monex, while highlighting the bullish behavior of the American currency this week.

On the euro side, the likelihood of a higher than normal rate hike by the central bank in September continues to rise, but the single currency’s market performance is not responding to this trend with an increase. ,The single currency remains stable due to growing risks of stagflation, further pushing bond yields higher.“, they also point the finger at Monex.

With that in mind, GDP data from Germany and the United States to be released this Thursday will be crucial in seeing what shape the cross, the most traded currency on the planet, takes. Earlier on Tuesday, the German country will release manufacturing PMI data for the month of August. Across the Atlantic, we will also have to see Thursday’s American home sales, especially after Ongoing home sales in July turn out to be slightly worse than expected by experts last week and “has contributed to the ongoing panic over the health of real estate in the country,” he told Banco Sabadell.

oil earrings

Beyond macro data for Europe and the US, we should keep an eye on those this week Interest rate on the People’s Bank of China loanWhich will take them off the oil list on Monday and Wednesday, which will affect the behavior of crude barrels, which are still more than 25% from the annual high recorded in June.

James R. Rhodes