The pound extended its losses against the US dollar last week as UK retail sales and consumer confidence dropped.
However, the US dollar failed to regain strength as major stocks fell amid concerns about an escalation in the Israel and Gaza conflict.
Compared to last Monday morning, the pound remains marginally unchanged against the US dollar and lost 0.6% against the euro.
Producer prices in Germany dropped at a record pace of 14.7% in September, compared with estimates of a 14.2% fall following a 12.6% decline in August.
UK retail sales declined 0.9% in September, reversing from August’s 0.4% growth and worse than market forecasts of a 0.2% fall. Sales at non-food stores fell by close to 2%.
The Malaysian ringgit weakened to a 25-year low on Friday, falling past $4.75 in October, the lowest since the 1998 financial crisis amid declining foreign demand.
US natural gas futures fell more than 8% last week, the lowest in over two weeks and likely pressured by record output, mild weather and larger-than-expected storage.
Today is relatively quiet on the data front, with the monthly report from Germany’s Bundesbank and the European Commission releasing preliminary consumer confidence data for October.
Tomorrow UK unemployment figures for August are due, more on that below, as is German consumer confidence and manufacturing PMIs.
On Wednesday, German business climate figures will be released and Federal Reserve chair, Powell will speak ahead of the Bank’s interest rate decision next week.
The spotlight this week will be on the European Central Bank which is due to announce its latest interest rate decision on Thursday afternoon. Markets forecast the rate to remain unchanged at 4.5%.
Later in the week, US economists will be listening out for the latest US durable goods orders, US GDP, US personal spending and core inflation figures.
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