The Euro slipped to two and a half year low against the U.S. dollar on Monday, as concerns about eurozone growth weighed on the single currency, while the greenback benefited from seasonal demand and uncertainty arising from the U.S.-China trade war. German annual inflation unexpectedly slowed for the third consecutive month in September, data showed yesterday.
The British pound edged higher against greenback, as pound shrugged off data pointing to a contraction in the UK economy as investor attention remained focused on Brexit news flow. UK data was generally encouraging. According to the official release, the kingdom’s Gross Domestic Product improved to 1.3% YoY in the second quarter of the year, while Total Business Investment in the same period falling by less than anticipated. The pound did not react to the data, given that there have been few signs of progress in breaking the Brexit deadlock with the European Union.
Looking ahead, it’s another busy day on the stats, with economic data out of the Eurozone and the U.S to provide direction. On the geopolitical risk front, Brexit, Impeachment talk and trade war chatter will likely continue to keep the news wires busy on the day.
