Today is a fairly quiet day in terms of economic data for both the UK and EU.
Looking ahead to the rest of the week the key event is likely to be Wednesdays release of the Bank of England inflation report and Governor Carneys press conference. With a number of MPC members having signalled that they feel the need to start raising interest rates is less pressing than before, investors will be watching for a conformation of this less hawkish stance. Otherwise, the UK labour marker report will give a reading on whether conditions in this area of the economy continued to tighten through September. Meanwhile, Q3 GDP and October retail sales will likely be seen as the most important releases of the week in the euro area and the US respectively
The dollar fell for a second day after U.S. October payrolls growth was weaker than economists forecast and traders reduced bets for an early Federal Reserve interest-rate increase.
The U.S currency weakened against the yen after reaching a seven-year high last week as Bank of Japan Governor Haruhiko Kuroda said there was no limit to easing measures the bank could take to tackle deflation. The Yuan and Australian dollar gained after data showed exports rose more than expected in China. New Zealand’s kiwi dollar also climbed.
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