Sterling rose on Monday after expectations of a rate hike could happen early next year, but those gains were capped after fears that the British economy could be in for a tough winter.
Petrol stations are running low in cities all across the country due to a shortage of tanker drivers. This on top of the growing worries about the impact on unemployment once the Furlough scheme is ended has made analysis concerned that any gains were overdone.
The main pairs of currency were trading in very narrow ranges yesterday and really seeing little movement. The euro recorded some loss after a somewhat lacklustre price action and pushing the EUR/USD down to levels that has only been seen once this year until now.
The small amount of movement in the forex markets yesterday is likely down to the pretty scarce set of data. The only release of any note was the US durable goods orders for August beating the consensus, by rising 1.8% in the month compared to the predicted 0.7%. That being said the ex-transport measure came out weaker at a 0.2% increase compared to the predicted 0.5%.
This morning we have already seen the consumer sentiment October reading for Germany which printed at 0.3, much better than -1.2 in September. Whilst in the US the latest readings of consumer confidence are projected for a slight increase after a heavy drop off in August following growing concerns of the delta variant. This being said unless there are some big surprises then this data is unlikely to have much of an affect on the currency markets
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Today’s Economic Calendar
GER: 07:00 Gfk Consumer Sentiment (October)
FRA: 07:45 Consumer Confidence (September)
IRL: 11:00 Retail Sales (August)
US: 14:00 Case-Shiller House Prices (July
US: 15:00 Consumer Confidence (September)