The Euro rally which started on Friday after better than expected US non-farm payroll figures continued yesterday but slowly began falling off as the day went on. Investors shrugged off more disappointing eurozone data, with confidence at its worst level for a year. The euro weakened after data showed German industrial production declined by 4% in August from the previous month, when it rose by 1.6%.
In Greece, Prime Minister Antonis Samaras yesterday asked for a vote of confidence in his government in order to try minimise growing speculation of early elections and the political instability it has created.
The dollar fell sharply on Monday as did the stocks on Wall Street fell after volatility picked up. With Friday's U.S. non-farm payrolls report fuelling speculation that the Federal Reserve will hike interest rates by mid-2015, lead the dollar to notching its 12th straight week of gains, the longest weekly winning streak in more than 40 years
The Australian dollar held its biggest gain in seven months after the Reserve Bank pointed to an improvement in private demand after keeping policy settings steady. With the RBA leaving interest rates at the record-low 2.5%, where it’s been since August 2013, and clarified it sees a likely period of interest-rate stability. However it said the exchange rate remains high by historical standards.
09:30 - BST - GBP: UK industrial Production (Aug) expected to be higher at 2.6%
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