24/08/2017 - Eurozone Delivers Strong Manufacturing Performance 

EUR

All eyes were on Europe yesterday after strong eurozone figures and Brexit concerns drove the Pound to a new eight-year low against Euro. The EU recorded its best manufacturing performance since April 2011, although the service sector did let the side down a little.

The surprising strength of the index was driven by the powerhouse German industrial sector, which saw accelerating output expansion, despite recent fears from economists that a slowdown might be imminent.

Elsewhere European Central Bank president Mario Draghi defended quantitative easing and forward guidance, but warned of further challenges ahead. Draghi said the eurozone economy is firing on all cylinders as super-easy monetary policy continues to flush the system with liquidity. Draghi gave a clear signal that the ECB remains determined to wind down its €2.3 trillion programme of bond purchases at the start of next year despite mounting jitters in overstretched financial markets. The hawkish tilt further strengthened the Euro after Draghi shrugged off concerns about the strong exchange rate.

Key Announcements

09:30 – GBP: Second Estimate GDP (Q2) is expected at 0.3%

13:30 – USD: Unemployment claims is forecasted at 237k