GBP

Sterling remains unchanged since last week’s close in early trading against both the euro and dollar. Sterling gained around 0.2% against the dollar on Friday afternoon , after employment data from the US disappointed . Against the single currency , the pound stayed within the same range traded all last week . The Confederation of British Industry (CBI) has warned the government that a labour shortage crisis could delay economic recovery for up to 2 years . The leading business lobby said that since Covid restrictions began to ease earlier this year , allowing the economy to reopen , companies have complained increasingly of a lack of workers especially in hospitality , food processing and logistics which has led to gaps on supermarket shelves and restaurant closures .

EUR

German industrial orders unexpectedly jumped beyond forecasts in July , suggesting that the recovery in the manufacturing sector of Europe’s powerhouse is gaining momentum. Official figures showed factory orders for last month rose by 3.4% on the month , well above to 1% rise expected. French finance minister has told French TV that he sticking to his previous targets of 6% economic growth this year and 4% for 2022 and reiterated that he does not see current inflation figures in France as a long term trend . Rising inflation in the Eurozone provides the backdrop for the European Central bank meeting on Thursday .

USD

The dollar index is trading just above one month lows in early trading , as traders have pushed back expectations for when the Federal Reserve Bank will begin to taper its pandemic stimulus scheme . This comes after US nonfarm payrolls increased by just 235,000.00 in August , compared with the 728,000.00 expected by economists , as a resurgence in covid cases weighed on demand at restaurants and hotels stalling hiring . The central bank has made a labour market recovery a condition for paring back its asset purchases . With a public holiday in the US today , traders are expecting light trading .