After struggling and ending last week on monthly lows against both the dollar and euro, sterling has begun the week on a brighter note with small gains against both in early trading. The pound has been supported as risk sentiment improved in Asian markets. This morning further inflation data will be released in the form of the producer price index (PPI). Last week’s CPI data came in within the Bank of England’s yearly target.
In spite of restrictions still in place to tackle Covid, the French economy is doing well thanks to a rise in consumer spending, French Finance minister Bruno La Maire said on Monday. His comments came after the first two weeks of August saw a rise of 5% in spending. La Maire told French television it was now the aim to return France to pre pandemic growth levels by the end of 2021. The Robert Koch institute which is continuously monitoring Covid cases in Germany, warned over the weekend that the fourth wave of the virus had already begun in the country.
The safe haven dollar retreated from more than nine month highs against its major peers in early trading. The dollar has been buoyed recently by a flight to safe haven currencies and signals that the Federal Reserve Bank is ready to taper its bond buying scheme. However, over the weekend Robert Kaplen, President of the Dallas Branch of the Federal Reserve Bank, said he would consider postponing any tapering moves in response to the impact of the delta variant.
09.30 am UK Manufacturing PMI 13:45 pm US Manufacturing PMI 13:45 pm US Markit Services PMI 14:00 pm EU Consumer Confidence