GBP

Sterling remains pressured by the dollar, but has held on to Fridays gains against the euro in early trading. For now, the pound has an advantage over the single currency because of the divergence in central bank policy, however further Brexit headlines could cap further gains, as the market waits for the EU reaction to Brexit Minister Frost’s speech today at the conservative party conference. According to experts, in the speech already released, Britain will threaten to dispense with some terms of its agreement overseeing post–Brexit trade with Northern Ireland, saying they have become too damaging to retain. The EU has previously said it will not negotiate the terms.

EUR

European Central Bank vice president, Luis de Guindos, said this morning that he expects to see strong growth in the eurozone in the last three months of the year, but recent indicators show manufacturing expansion has lost some strength, citing supply constraints and higher energy costs as the reason. He added that monetary policy will remain accommodative (loose) and if economic activity normalises, the central bank’s Pandemic emergency bond purchasing programme would have been a success.

USD

The safe-haven dollar found support just below last week’s peaks on Monday as renewed concerns about China’s property sector put traders in a cautious mood. Shares in embattled developer China Evergrande were suspended in Hong Kong, rekindling market nerves that a collapse at Evergrande could hurt an already fragile Chinese economy and drag on global growth. Looking ahead, US employment data released on Friday is the major data highlight of the week.

No major data is due for release today