[vc_row][vc_column][vc_column_text]The pound had a rocky ride last week as the Queen accepted government’s request to suspend Parliament.

The US dollar, meanwhile, fluctuated in response to US-China trade developments, and the euro was pressured lower by disappointing inflation data.

Markets are bracing for volatility this week as Parliament reconvenes for four days on Tuesday.

The pound got off to a poor start to the week, with GBP broadly softening following the release of the UK’s manufacturing PMI.

The gauge of manufacturing output dropped to a seven-year low in August, with business confidence and new orders plummeting.

According to Rob Dobson, Director at IHS Markit, ‘High levels of economic and political uncertainty alongside ongoing global trade tensions stifled the performance of UK manufacturers in August.’

Concerns for the UK’s economic outlook would increase if this week’s construction and services PMIs also disappoint.

However, economic news is likely to come second to political developments over the next few days as Parliament reconvenes.

No-deal Brexit fears and intensifying speculation about a UK general election are likely to keep GBP under pressure.

This could prove to be a pivotal week for the government and Brexit, so keep an eye on our daily market updates if you want to stay on top of the latest news.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Euro struggling as ECB rate decision looms

The prospect of the European Central Bank (ECB) unveiling a substantial stimulus package at its September policy meeting is capping the euro’s potential for gains at the moment.

The single currency is also struggling against some of its peers in the face of disappointing domestic data.

Last week’s core Eurozone inflation figure came in at 0.9%, less than the 1.0% estimate and far below the ECB’s target.

However, the euro did derive some support from the news that Italy’s Prime Minister designate, Giuseppe Conte, is confident that a workable coalition will be formed in the week ahead.

Mr Conte said: ‘I see a good working atmosphere. From this point of view, I am absolutely convinced that everyone is willing to set aside the past and concentrate on this important proposal that affects the whole country.’

This week investors will be focusing on Eurozone retail sales, German factory orders, Markit’s German construction PMI, German industrial production, and final Eurozone growth figures for the second quarter.

Any reports which support the case for significant ECB easing would be euro-negative.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]To request an instant quotation on a currency quotation please click here

* Information courtesy of Currencies Direct, Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.[/vc_column_text][/vc_column][/vc_row]