Wednesday 23rd August
03:15 - 04:30 AM ET
PMI (Manufacturing/Services/Composite)
What is it?
The Purchasing Managers' Index (PMI) is an economic indicator that measures the current direction of a country's economic trends in the manufacturing or service sectors. It is based on survey data from purchasing managers across industries and provides valuable insights into business conditions, production levels, new orders, employment, and supplier deliveries. In this instance, we get the manufacturing, services, and composite reads for Europe, the UK, Germany, France, and Spain.
What to expect:
The data is presented in a diffusion index, meaning a reading above 50 or above the prior is expansionary, whilst below 50 or below the prior is contractionary. Whilst the bond market prefers steadier growth, if the reading is positive for the economy then the EUR or GBP will see a spike up.
Friday 25th August
02:00 AM ET
German GDP Final
What is it?
Gross domestic product is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole.
What to expect:
Robust economic activity can firm up interest rates, which increases the demand for the Euro. If inflation accelerates and stays high, it can lower Germany’s’ competitiveness in the world and worsen trade. If the economy is growing steadily then the bond market will react bullishly.
04:00 AM ET
German Ifo
- Business Climate
What is it?
The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers. The index is compiled by the IFO Institute for Economic Research.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
- Expectations
What is it?
German Business Expectations rates the expectations of businesses in Germany for the following six months. It is a sub-index of the German Ifo Business Climate Index.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
- Current Conditions
What is it?
The German Current Assessment rates current business conditions in Germany, without considering future expectations. It is a sub-index of the German Ifo Business Climate Index. The results are released the same month as the survey is taken. More than 7000 businesses are surveyed.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
