The pound is still strong against the dollar and weaker against the euro this morning. PMI data, which measures the performance of the services and manufacturing industries, could provide some direction for sterling today and on Friday.
Inflation data for the Eurozone came in yesterday, with the annual inflation rate for August estimated at 3%, providing a boost for the euro. This is well above the European Central Bank’s target of 2% and could prompt some discussion at its monetary policy meeting next week. Two ECB officials have already suggested that stimulus measures should be tapered soon.
The dollar is still weaker after the Federal Reserve’s ‘dovish’ comments at the Jackson Hole Symposium last week. All eyes will now turn to on the US’ Non-Farm Payrolls report, which is due to be released on Friday.
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