The pound has made some recovery from the lows of last week, but is still looking weak this morning while the markets await a number of important economic figures today. We will see unemployment data and productivity stats for the UK, as well as economic sentiment indices for Germany and the Eurozone as a whole.
Meanwhile, political tensions continue in Italy. After Five Star and League have failed to agree a date for Matteo Salvini’s no-confidence motion, the Senate will discuss today whether to hold it tomorrow or after the 20th August. With the President insisting Italy’s budget must be approved by autumn, there isn’t a lot of time left.
John Bolton, Donald Trump’s National Security Advisor, has said that the UK is ‘first in line’ for a trade deal. Nonetheless, there is still plenty of uncertainty around Brexit, with reports that Ireland will not renegotiate the backstop.
The main focus today in the US will be inflation releases, ahead of which the dollar is strong – despite continuing trade tensions with China.
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