Sterling enjoyed some respite on Tuesday, rising from three-year lows against the euro and pulling further away from a five-week trough against the dollar, after slightly higher than expected inflation data. Consumer price rises gathered speed, up 0.6 percent in July compared with a year earlier, their biggest rise since the end of 2014. Economists had expected a 0.5 percent rise, and factory gate prices rose at their fastest in over two years as the fall in sterling after the vote to leave the European Union pushed up import prices. Data showed producer prices rose by 0.3 percent in July, compared with the same month last year, stronger than a median forecast.
The dollar extended last week’s retreat as investors became less confident over a potential rate increase in 2016, with minutes of the Federal Reserve’s July meeting due on Wednesday. A US Dollar Index, which tracks the greenback against 10 major peers, dropped 0.2 percent, bringing its drop in the year to 4.7 percent as the U.S. shows few signs of diverging from central banks in Asia and Europe, which are bolstering stimulus
09:30 – GBP : Average earnings index is forecast to increase to 2.5%
09:30 – GBP : Claimant count change is expected to increase to 5.2k
15:30 – USD : Crude oil inventories expected to fall to 0.3M
19:00 - USD: FOMC meeting minutes