Weekly Economic Outlook: Key USD & EUR News to Watch

Significant events to watch:

-EU (EUR): Eurozone Producer Price Index (PPI) YoY

-US (USD): U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI)

-US (USD): U.S. Initial Jobless Claims

EU (EUR): Eurozone Producer Price Index (PPI) YoY – The Producer Price Index (PPI) measures average changes in prices received by domestic producers for their output. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation. Usually a rise in PPI will lead in a short time to a rise in CPI and therefore to a rising interest rates and rising currency. during recession, the producers are not able to roll over the rising cost of material to the consumer, so a rise in PPI will not be rolled over to the consumer but will lower the profitability of the producer and will deepen the recession, that will lead to a fall in local currency.

The previous reading was -8.8% worse than the expected -8.7%. The next report is due on February 05, 2024 at 10:00 GMT. Its forecast stands at -10%.

US (USD): U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI) – The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

The previous reading came out to be 50.6 worse than the expected 52.6. The next report is due on February 05, 2024 at 15:00 GMT. Its forecast stands at 52.

US (USD): U.S. Initial Jobless Claims – Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

The previous actual data was 224K worse than the forecast of 213K. The upcoming report is due on February 08, 2024 at 13:30 GMT and its forecast figure stands at 219K.

Risers and Fallers

-Nasdaq 100 (+1.17%)

-Berkshire Hathaway (+1.26%)

-Apple Inc (-3.23%)

-Brent Oil (-5.59%)

Nasdaq 100– The Nasdaq 100 index demonstrated a slight surge last week, registering nearly 1.17% gains. Note that the index has shown a bullish trajectory over the last 1 year, registering more than 41% net gains.

Berkshire Hathaway – The stock climbed over 1.20% in the last 5 days. The stock has displayed an uptick performance these past 6 months, adding nearly 7.7% in value.

Apple Inc – Apple’s stock exhibited a negative performance previous week, shedding almost 3.23% in value. Overall, it has almost gained 22% in the previous 12 months.

Brent Oil – Brent Oil’s price dropped 5.59% in the past 5 days. The commodity is now trading at 76.91 USD.

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