Weekly Financial Market Outlook

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The beginning of a new trading week has brought investors a continuing business trend of strengthening of the single European currency, the Euro (EUR) against the US dollar (USD). On 5 October 2020, at 6:35 am CET, the EUR/USD currency pair was trading on the international exchange – Forex market at a mutual exchange rate of  US$ 1.173 per EUR, with the daily strengthening of the EUR by +0.13% of the exchange rate against the USD.

This week, which is the 41st one of 2020, investors expect the following events to affect the business trend of the global financial market:

Non-manufacturing Purchasing Managers’ Index (PMI) in the EU and the USA – Monthly

The Institute of Supply Management (ISM) Services PMI report points reflects activity in the services sector in the reported month. The indicator is based on a survey of representatives of more than 600 companies for the EU and more than 300 companies for the USA. Values above 50 can have a positive effect on quotations in EUR and USD. The EU will publish the data on Monday 5 October 2020 at 10:00 am CET and no change is expected compared to previous results (47.6 points). Data for the USA will be published on Monday, 5 October at 4:00 pm CET. Its value is expected to decrease slightly from the current 56.9 to 56.3 points.

Retail Sales in the EU – Monthly

Retail sales reflect the change in retail salaries in the UK in the month under review compared to the previous one. The calculation is adjusted for inflation. The index is often called the Consumer spending indicator and allows inflation to be assessed. The growth of the indicator may have a positive effect on quotations in Euro. It will be published on Monday 5 October at 11:00 am CET and is expected to increase by 2.4% compared to the previous month.

FOMC Meeting Minutes

The minutes of the Federal Open Market Committee (FOMC) meeting held two weeks ago will be published on Wednesday, 7 October. The minutes provide detailed information on the FOMC’s stance on monetary policy, which, in particular currency traders carefully examine in order to find out more about the future interest rates. 

Gross Domestic Product (GDP) in Britain –  Monthly

These data are a measure of the total value of goods and services produced in a given country. GDP is the most comprehensive indicator of economic performance and provides a key insight into the driving forces of the economy. They will be published on Friday, 9 October at 08:00 am CET. According to analysts, GDP is expected to grow by 4.6% compared to the previous month.

Manufacturing Production in Britain – Monthly

Manufacturing production reflects the change in total value, inflation adjusted, of the manufacturing output. It accounts for about 80% of total production, and as it responds quickly to growth and decline in the business cycle and correlates with consumer conditions such as employment levels and wage changes, it is a key indicator of economic health. The data will be published on Friday, 9 October at 08:00 am CET and is expected to increase by 3.2% compared to the previous month.

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