Installation of industrial robots speeds up

Erste Bank Research Team Erste Bank

On the radar

At 10 AM CET Poland will publish industrial output growth for September, producer prices, employment and wage growth.
AT 10.30 AM CET Slovenia will release producer prices.
At 11 AM CET September’s unemployment rate will be released together with August’s wage growth.
Unemployment rate in Slovakia is also due today.

Economic developments

Today, we look at the progress in automation worldwide. According to the World Robotics report, factories worldwide recorded more than 4 million industrial robots operating in 2023, marking an increase of 10% compared to 2022. Annual installations exceeded half a million units for the third consecutive year and reached 541 thousand in 2023. By region, 70% of all newly deployed robots last year were installed in Asia, 17% in Europe, and 10% in the Americas. It is worth noticing that the definition of "robot" does not include software (such as AI), autonomous cars, or remote-controlled drones. Looking at the industry, the highest number of robots was installed in the automotive sector and the electronics industry. Regarding the region, the number of robots installed in Germany is important to watch. In the automotive sector it rebounded after a significant drop in 2022 and grew by 7% overall, as more than 28 thousand units of robots were installed in Germany in 2023.

Market movements

Overall, the CEE currencies changed little in week-to-week terms. However, all of the pairs remain at relatively high levels. The CEE bond market showed mixed performance over last week. The long-term yields in the Eurozone countries inched down as the ECB decided to lower interest rates by 25 basis points. In other countries, particularly in Hungary, the long end of the curve shifted up. The main reason behind such development may be an adjustment in expectations regarding monetary easing in Hungary. This week, the central bank holds a rate-setting meeting on Tuesday, and a pause is expected. However, it may prove to be more permanent. In Czechia, Governor Michl called for cautiousness after the statement of another central banker who supported more aggressive monetary easing.

Download The Full CEE Macro Daily

Author

Erste Bank Research Team

Erste Bank

At Erste Group we greatly value transparency. Our Investor Relations team strives to provide comprehensive information with frequent updates to ensure that the details on these pages are always current.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

WTI Oil climbs as US-Iran standoff keeps Middle East supply risks elevated

West Texas Intermediate (WTI) Oil holds firm on Wednesday, hovering near its highest level in more than three weeks as traders balance Middle East supply risks against rising US crude inventories. At the time of writing, the US benchmark trades around $85.20 per barrel, up nearly 1% on the day.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.