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According to Danske Bank analysts it’s a busy day ahead of us as we have PMI’s for the US, euro area, and Germany plus central bank events.

Key Quotes

“We expect PMI’s in all countries to deteriorate from their current levels on the back of the slowing global growth and geopolitical risks. In the US, we expect PMI manufacturing to drop below the 50 mark. That said, our forecast was made before the release of the strong regional PMIs last week, which means there are upside risks to our estimate.”

“In the euro area we expect the manufacturing PMI to decline from the already 6.5 year low level of 46.5 to 46.2 driven by the still very fragile German manufacturing sector.”

“On global monetary policy, we have ECB July meeting minutes as well of a lot of monetary policy discussions from the Fed’s Jackson Hole conference. The theme is “Challenges for Monetary Policy”, which suggests it will focus on the same things as in the FOMC review of the current monetary policy framework. The ECB minutes will be scrutinised for any news regarding new policy measures.”

“UK Prime Minister Boris Johnson meets with French President Emmanuel Macron after his visit to Germany yesterday. EU has continuously rejected PM Johnson’s call for a removal of the backstop of the withdrawal agreement.”