The Eurozone released the CPI Flash Estimate figure yesterday, which exceeded the markets expectations, to post a bullish 1.5%, the highest reading in four months. However, despite positive economic reading, the Euro has slipped against the Greenback as the markets begin to speculate about next week’s ECB meeting and press conference. The markets suspect the ECB might step in to weaken the Euro as ECB President Mario Draghi could be growing more concerned about the Euro’s strength, despite not mentioning it at last week’s Central Bank gathering at Jackson Hole.
Further Brexit commentary hit the wires yesterday. This time from International Trade Secretary Liam Fox who said the UK must not allow itself to be “blackmailed” by the EU over its settlement bill. Fox is also pushing for talks to begin as quick as possible and is becoming impatient with the slow progress. Brexit comments continue to dictate the Pounds movement so any further developments from these talks will no doubt inject volatility into the Pound.
The first day of the month kicks off with the all-important data coming out of the U.S with their Non-Farm Payroll release, expected at 180k. This is followed by their Manufacturing PMI data figure forecast at 56.5.
The UK will also release their important Manufacturing PMI figure expected at exactly 55. The Eurozone will also be releasing some Manufacturing PMI data, but it is not expected to have too much of an impact.