Friday's trading session is lighter with little key influential data, however, the UK is set to deliver a 'mini budget'.

German PMI

The German PMI has changed to 49.1 in August from 49.8, demonstrating a second consecutive month of falling factory activity (the worst since June 2020). The slow rate of job creation at warehouses and stocks rose, on top of the excessive number of new orders which weighed on production levels (investing.com). In August the rate of cost due to inflation retreated, however, with recent events and interests around Europe continuing to rise, uncertainty in the energy market and economic slowdown risks are still causing worries. The forecast for September is 48.3, if the figure lowers it will suggest a bearish outlook for the EUR, and if it is higher it will suggest a bullish outlook.

The U.K is set to deliver “mini-budget”

EU stock markets are expected to open with mixed emotions today due to the series of interest rate hikes and ahead of the fiscal update by the new UK chancellor of the exchequer. Looking at the futures, this morning the DAX (German index) traded 0.3% lower, CAC 40 (French index) dropped 0.3% while the FTSE 100 contract in the U.K rose 0.2%. There is potential for the U.K market to outperform after the fiscal update from Kwasi Kwarteng, he is set to provide more information about the UK's plans to support its economy through what looks like a worrying winter period.