The euro renewed the high and is looking for some balance. Overview for 02.09.2020

In the middle of the week, EURUSD is stabilizing after extreme activity on the previous trading day. The current quotations is 1.1910.

The statistics published yesterday demonstrated that the final PMI of the production sector in the EU in August remained at 51.7, as expected. In Germany, by the way, the index got worse compared to preliminary results, declining to 52.2 against 53 points.

The preliminary estimation of base inflation in the EU in August demonstrated an increase by 0.4% calculated per annum. These digits are very week: it was forecast to fall to 0.9% (per annum) after 1.2% in July (per annum). The inflation itself in the region in August slumped by 0.2%, entering the deflation zone, though an increase by 0.2% (per annum) was expected.

The US statistics was no better. The expenses on construction in July grew by only 0.1% (calculated per month) against the expected 1% of growth and the previous decline bu 0.5%.

The only cheering information from the macroeconomic flow was the PMI in the production sector in July. The indicator rose to 56 points from 54.2 points. This means the number of new orders is enough to provide work for the sector.

This morning, Germany publish statistics saying that retail sales in July dropped by 0.9% (per month). This is worth than expected. Consumers in this locomotive of the EU economic development remain cautious and thoughful, which might hold back the restoration of the economic system.