On the radar
-
Current account in Slovakia posted a surplus of EUR 64 million in June. The unemployment rate increased to 5.1% in July.
-
Today, Poland will release series of July’s data: industrial output growth, producer prices, employment and nominal wage growth.
-
At 11 AM CET, Croatia will publish July’s unemployment rate and June’s real wage growth.
Economic developments
The share of solid fossil fuels (hard coal, brown coal and coal products) in electricity production declined over the last two decades in the region and in the whole EU. Actually, Poland and Czechia are the only two remaining producers of hard coal in the EU. Although, Poland keeps using hard coal as a major source for electricity generation, the share of solid fossil fuels in electricity generation declined from 90% in 2002 to 70% in 2022. Further, brown coal (that is coal with lower energy content) is used in electricity generation by nine EU countries. Slovakia, Hungary and Croatia, on the other hand have the lowest share of solid fossil fuels in electricity generation within the region. Setting the climate goals helps the share of renewables and biofuels to keep growing. In fact, in the EU more electricity is generated using renewables and biofuels than solid fossil fuels. In the region, Croatia leads in terms of use of renewables in electricity generation (more than 60% share).
Market movements
According to the Romanian Fiscal Council's annual report, Romania's fiscal deficit is expected to surpass 7 percent of GDP in 2024 and has the potential to rise towards 8 percent mostly due to additional costs from new pension legislation and public sector wage increases in the latter half of the year. At this point we see budget deficit in the range of 6.5% to 7% of GDP in 2024. In Poland, the Constitutional Court ruled that a parliamentary probe into the actions of Governor Glapinski is unconstitutional. Such a ruling will make the investigation into the central bank’s governor more difficult. On the monetary policy front, Governor Glapinski admitted that discussion about monetary easing may be possible prior to 2026 if there is certainty that inflation is on downward trajectory. On the FX market, while the EURCZK and EURHUF have been moving slightly lower, the polish zloty on the contrary weakened somewhat against the euro since the beginning of the week. Long-term yields have been lower this week everywhere but in Romania.
This document is intended as an additional information source, aimed towards our customers. It is based on the best resources available to the authors at press time. The information and data sources utilised are deemed reliable, however, Erste Bank Sparkassen (CR) and affiliates do not take any responsibility for accuracy nor completeness of the information contained herein. This document is neither an offer nor an invitation to buy or sell any securities.
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1100 ahead of key US events
![EUR/USD consolidates weekly gains above 1.1100 ahead of key US events](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-13797882_XtraSmall.jpg)
EUR/USD fluctuates in a tight range slightly above 1.1100 after setting a new 2024-high earlier in the day. The preliminary revision to benchmark Nonfarm Payrolls and the FOMC Minutes could drive the USD's valuation and impact the pair's action.
GBP/USD holds steady above 1.3000, eyes on US data
![GBP/USD holds steady above 1.3000, eyes on US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-1178148633_XtraSmall.jpg)
GBP/USD consolidates its weekly gains but holds comfortably above 1.3000 in the second half of the day. Before the Federal Reserve publishes the minutes of the July 30-31 meeting later in the day, investors will scrutinize Nonfarm Payrolls benchmark revision.
Gold retreats from record highs, stays above $2,500
![Gold retreats from record highs, stays above $2,500](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/XAUUSD/gold-ingot-20089693_XtraSmall.jpg)
Gold pulls back to the $2,510s on Wednesday after touching a new all-time high of $2,531 on the previous day. The correction coincides with a slight bounce in the US Dollar (USD), to which Gold is negatively correlated.
Top three AI-related tokens yielding highest gains year-to-date: AIOZ, AR, FET
![Top three AI-related tokens yielding highest gains year-to-date: AIOZ, AR, FET](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
The Artificial Intelligence (AI) sector in the crypto market has a few protocols whose tokens have generated significant yields for users since the beginning of 2024.
Where is the US Dollar heading after the Fed paved the way for a September cut? Premium
![Where is the US Dollar heading after the Fed paved the way for a September cut?](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/DollarIndex/money-gm95713421-2487488_XtraSmall.jpg)
Financial markets have been extremely volatile in the last couple of weeks, as all of a sudden, investors realized central bank officials still have the ability to surprise them.
Moneta Markets review 2024: All you need to know
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.