Daily Update - 11th August 2020
CNY Consumer Price Index China has recently released its producer prices index for July, which indicated that producer prices declined by 2.4% on a year-over-year basis compared to analyst consensus which called for a decline of 2.5%. In June, PPI was -3%, so there are signs that producer prices are improving, which signals that China’s manufacturing sector is rebounding after the hit dealt by the coronavirus pandemic. Data from China is seen as a leading indicator for the rest of the world since the country has managed to contain the coronavirus pandemic earlier than other nations. GBP ILO Unemployment Rate EUR ZEW Economic Survey US Producer Price Index ex Food & Energy For the EUR, it’s a relatively quiet day ahead on the economic calendar. ZEW Economic Sentiment figures for August are due out for Germany and the Eurozone. Following the lack of stats on Monday, we can expect some EUR sensitivity to Germany and the Eurozone sentiment figures. The markets will likely brush aside Germany’s Current Conditions Index, however. Away from the economic calendar, expect geopolitics to also be a factor on the day. For the Pound, it’s a busy day ahead on the economic calendar. June’s unemployment rate and July’s claimant count are due out later this morning, along with employment change figures for June. We would expect July’s claimant count figures to have the greatest impact on the day. Away from the economic calendar, any chatter on Brexit and trade negotiations will also need monitoring. Across the Pond, it’s a relatively quiet day ahead for the U.S Dollar. Key stats include July’s wholesale inflation figures. Following the pickup in private sector activity in June and July, the markets will be looking for a pickup in wholesale inflationary pressures. On the geopolitical front, chatter from the Oval Office and Beijing will also influence on the day.Yesterday’s Focus
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