Market Information Friday 6 September 2024

Retail sales in the eurozone rose by 0.1 percent month-on-month in July, less than the expected 0.3 percent, following a 0.4 percent decline in June. On an annual basis, sales fell by 0.1 percent in July. These figures were released by the European statistical agency Eurostat.

The U.S. services sector continued to grow in August, with the Purchasing Managers’ Index rising from 55.0 in July to 55.7, the highest level in nearly two and a half years. The composite index improved slightly from 54.3 to 54.6, despite a decline in the manufacturing index from 49.6 to 47.9. Analysts suggest that this growth indicates robust economic development in the third quarter and supports expectations of a ‘soft landing’ for the economy.

The upward potential for the euro is limited in the short term, as September is usually a weak month for the euro/dollar pair and the trade-weighted euro index. Analysts suspect the cause may be related to the corporate tax deadline in the US and expect the euro/dollar to remain within the range of 1.05 to 1.11, unless there is a sharp rise in US unemployment figures. The British pound could come under pressure if the Bank of England signals cooling wage growth and declining inflation, which could influence market expectations.

The 6M Euribor increased with 3 basis points to 3.38% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.47% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.