Sterling remained range bound against both the dollar and euro in early trading . Brexit minister Lord Frost has announced the UK’s intent to extend post-Brexit grace periods on some goods imported to Northern Ireland . The move is expected to allow talks to continue with the EU aimed at resolving disputes between the two over the Northern Ireland protocol . There is currently a grace period and other easements being applied to aspects of the protocol , meaning only light controls are being placed on exports from the UK to Northern Ireland . Following a bitter row . dubbed the “sausage war” over the issue earlier this year , both the EU and UK in June agreed to extend this period until the end of this month . However , the grace period now looks set to continue indefinitely following Lord Frost’s announcement . A survey from mortgage lender Halifax released this morning showed house rose by 0.7% in August , the biggest month to month rise for 3 months . This followed a 0.4% rise in July.


EUR/USD is little changed after German industrial production came in at 1% month on month , slightly better than the 0.7% expected , but still 5.5% lower than the pre-pandemic level in February 2020 . The ZEW survey which reflects institutional investor sentiment is due for release for eurozone and Germany later today , as well as GDP figures for the union . However, the major focus for traders this week will be Thursday’s European Central Bank meeting.


Following the Dollar index’s multi- week lows in the wake of the disappointing employment data on Friday , the greenback has regained some composure advancing for the second day , albeit at a modest pace . The dollar moved in tandem with treasury 10 year bond yields which consolidated Friday’s sharp rally to trade above 1.30% . With no major economic data due for release today , bond yields will continue influencing the dollars demand.