EUR

The Eurozone’s slow growth is no longer temporary says Governing Council member Olli Rehn. The slowdown in the euro-area should not be considered a ‘temporary dip’ and the European Central Bank should prepare in case it gets worse according to Mr Rehn. Mr Rehn also went onto say ‘’growth in the euro area has slowed significantly recently, and we cannot deny that there are doubts among market participants and the public about the ability of the central bank to achieve the price stability target’’.

The region’s slowdown has lasted for more than a year, and has been exacerbated by global trade tensions and political uncertainties that have weighed particularly on manufacturers. Furthermore the EU’s biggest economies have not started the year well with slow growth in Germany and France contributing to the region performing to a lower standard than expected. In June, the ECB officials did indicate that they were willing to cut interest rates further and possibly even restart asset purchases if the economic situation fails to improve. While the prospect of further monetary easing was welcomed by markets, some observers have questioned the feasibility of such moves given weak profitability of banks, who struggle with negative interest rates.

Key Announcements

13:30 – USD: Average Hourly Earnings m/m – Forecast at 0.3% from previous 0.2%
13:30 – USD: Non-Farm Employment Change – Forecast at 164K from previous 75K
13:30 – USD: Unemployment rate – Left unchanged at 3.6%