In much the same way as the US economy’s Manufacturing PMI, the health and pace of the German industrial sector is also the driving force not only for its domestic economy but really for that of the European Union as a whole.
With September’s ECB meeting right around the corner, those members of the committee who have surfaced recently in support of less aggressive monetary easing at this point will be hoping to see Germany’s productions numbers growing again for July.
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Data supporting more cautious maneuvers (i.e.: “only” a rate cut) from the ECB should spur the Euro currency, perhaps enough to weaken the Dollar a bit; while more negative metrics that might propel the ECB to also introduce new quantitative easing could have the inverse effect, even to the degree that it negatively effects gold prices (however temporarily.)
And that’s how this shortened week lays out ahead of us, traders. I wish you the very best of luck in the markets over these four days, and I’ll see back here on Friday for a thorough recap of the week’s macroeconomic events and headlines.
