Slow September Start As Data Dries Up
The first day of September offered no change from the subdued action across the markets we have seen of late. There was little data released yesterday, and despite there being some surprises in the USA (with ADP employment report printing well below forecasts, and manufacturing ISM coming in above) markets showed little interest with the main pairs confined to fairly narrow ranges. In general terms, both sterling and dollar were holding softer tones, with the dollar reversing its gains from the previous day.
As we get underway this morning the weaker sterling trend continues at the open, this is reflected in EUR/GBP brushing up against the 86p mark, while EUR/USD opened this morning back above the $1.18 threshold, near to the midpoint of $1.18-1.19. Meanwhile, GBP/USD is trading hands in the upper half of $1.37-1.38.
Looking ahead to today, the data diary is yet again devoid of any noteworthy releases. Tomorrow sees the release of the important US payroll numbers for August, so it is likely that today will offer fairly sideways movement as traders keep their pencils sharpened for tomorrow.