Boy oh boy is it a busy week. Rate votes from both the Federal Reserve and, crucially, the Bank of England, the first Q3 GDP reading from the Eurozone, a slew of manufacturing and services PMIs AND, if that wasn’t enough, a non-farm Friday.
Sadly, Monday is a bit drab in comparison. For the UK the main focus is on the net lending to individuals reading, set to arrive at £5.5 billion in September against £5.6 billion in August. Investors may also be concerned by the news that the IFS has calculated that by 2021/22 Britain’s deficit will remain at £36 billion, almost double the £17 billion previously forecast (that leaves Philip Hammond in a bit of a tricky situation heading into November’s budget).
Despite all this, the pound has clawed back some of last week’s losses against the dollar, with cable climbing 0.3% to hit €1.316. Against the euro, meanwhile, sterling sat flat, though that means the currency is still lurking above €1.13 at a 4 week peak. The FTSE wasn’t best pleased by the pound’s bounce, once again dipping under 7500 with a 25 point fall.
Over in the Eurozone things were pretty quiet, with the DAX flat and CAC down 0.1%, as the euro rose 0.3% against the dollar. Only the IBEX really moved, surging 1.5% to counter last Friday’s chaotic plunge, the index in part helped by a healthy 0.8% Q3 GDP reading (i.e. double what the UK managed across the same period).
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