Sterling has begun the week down against the dollar , but steady against the euro . The pound has come under pressure after Friday’s GDP figures revealed that Britain’s economy from the lockdown, virtually stalled in July despite the removal of most pandemic restrictions . Also undermining sterling , was the European union’s Brexit chief Maros Sefcovic’s rejection of the UK’s demand to rewrite Northern Ireland trade rules , further stretching tension between the two over the protocol.
The Euro is down in early trading as traders digest the possibility of a left-leaning government in Germany ahead of the national elections in two weeks’ time . Centre- left frontrunning candidate Olaf Scholz of the social democratic party refused to rule out a coalition with the radical Die linke party in Sunday’s second television debate . Scholz was declared the winner after the debate.
The dollar has begun the week on a firm footing . In early trading the greenback inched higher after ending last week on a positive note gaining 0.5% against the pound and the euro . U.S. consumer price data on Tuesday is the next major focus for traders, along with U.S. retail sales and production figures later in the week . Philadelphia Fed President Patrick Harker, in a Nikkei interview on Monday, joined the chorus of recent policymakers keen to begin scaling back asset purchases .