Sterling dropped to it’s lowest level in a month against the US Dollar on Monday, as markets speculated about data due to be released this week. The data is widely expected to show that Britain’s decision to leave the European Union has had a negative impact on the economy.
The Pound touched it’s weakest level since July 11th, ahead of reports on inflation, retail sales and unemployment benefit claims for July. These releases will provide more detail on how the economy is faring after the Referendum. Against the Euro, Sterling touched levels not seen since 2013.
The odds of a hike in US interest rates this year have eased to 9 percent for September, and 41 percent for December in the Futures market. This follows on from the release of the U.S. retail sales figures.
The Crude Oil price hit a one-month high on Monday, on increasing hopes that some of the world's biggest oil producers will act to help markets which have been drowning in oversupply for two years. Oil prices rose during the New York session, amid speculation about potential producers’ collective action to freeze output and support prices.
09:30 – GBP : CPI year on year, forecast to increase by 0.5%
10:00 – EUR : German ZEW Economic Sentiment, forecast to increase by 2.1
13:30 – USD : CPI month on month, forecast to increase by 0.0%