Yesterday’s PMI numbers showed slight signs of improvement in manufacturing sentiment for August in most countries, but overall it remains well below the 50-point threshold. At the same time, Turkey’s second-quarter GDP delivered a negative surprise that points to weakening momentum, notes Frantisek Taborsky, FX strategist at ING.
Markets are back in full swing after the US holiday
“This morning the breakdown of second quarter GDP in Hungary was released and later today we will see second quarter wages in the Czech Republic, which we see rising 4.2% year-on-year in real terms, slightly below market expectations, while the Czech National Bank (CNB) expects 4.6%. This could be the first time in a while that a data release will have the attention of the CNB and could bring some volatility to the stable summer market levels.”
“Also today in Turkey, we expect inflation to fall back from 61.8% to 51.8% y/y, which is also the market consensus, mainly due to the base effect and lower food price growth. After the US holiday, markets are back in full swing and we maintain our yesterday’s bias for CEE FX.”
“PLN saw the biggest gains within the region following continued revaluation in the rate space ahead of the National Bank of Poland meeting on Wednesday. We believe there is more to come here, plus EUR/USD showed some reversal limiting the negative impact of the previous days. Therefore, we remain bullish on PLN but also on CZK, heading below EUR/CZK 25.00.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
