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Friday could be quite a bouncy day for the euro because we have a busy macro data schedule.
Sure, the recent spike in covid cases has taken over the news, but fundamental data still drives the market.
If we are looking at another round of lockdowns, then whether or not there was a bounce-back in Q3 is going to be vital to project what could happen from here to the end of the year.
During the summer, most of Europe managed to return to a semblance of normality in the majority of business activity. Factories that had closed for periods in the second quarter had adapted to new processes and had sufficient PPE.
Retail, of course, was still limited, especially the hospitality and travel sector. However, that represents a relatively small percentage (5%) of the EU’s GDP.
The consensus is that industry is now prepared, so a second round of lockdowns is likely to have a significantly smaller impact on the economy.
Hospitality likely will be impacted again, but commercial services and ind...
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