Both the pound and the euro strengthened against the dollar at the end of last week following a disappointing US Non-Farm Payrolls report. The report revealed that the number of new jobs added to the US economy in August dramatically missed expectations, possibly due to a surge of Covid cases in the US. This morning, however, the greenback has regained some strength.
All eyes will be on the European Central Bank’s latest monetary policy meeting this week, in which the EU’s Pandemic Emergency Purchase Programme (PEPP) is likely to be discussed. Following a high inflation reading for the Eurozone last week, it’s thought that some officials will suggest that stimulus measures should be tapered soon.
To finish the week, a flurry of economic data for the UK is due to be released, including GDP and industrial production figures.
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