GBP makes decent gains as Italy sinks into recession
As the US markets take the day off today to celebrate the idea of “work”, the start of September sees us focus on figures coming out of the UK and the Eurozone.
GBP rises, EUR falls
At the end of last week, the Pound finally stopped its slide against the US dollar and started making decent gains against the Euro, so will we see this continuing?
The Eurozone is certainly not a happy place at the moment as Italy has sunk into recession for the third time, having only come out of it at the end of 2013, and Germany not looking as strong as previously as GDP has shrunk by 0.2%. The pressure remains on Mario Draghi to act and act decisively. Inflation in the Eurozone has dropped to 0.3% in August and the Russian-Ukrainian conflict is further impacting the faltering economic recovery. All eyes are on Thursday’s ECB meeting.
A Volatile Month
As earnings season in the US begins, we eagerly await Friday’s non-farm payrolls data. September is traditionally the most volatile calendar month as people come back from holiday!
News out today is very UK/Euro centric. We have PMI from Italy, France, Germany, Greece, the Eurozone and the UK. Also of quite high importance is mortgage approvals out of the UK.