Sterling was steady on Monday as investors looked for signs of progress in Britain’s Brexit talks and awaited a Supreme Court ruling on whether Prime Minister, Boris Johnson, misled Queen Elizabeth over his reasons for suspending parliament this month.
Johnson suspended Parliament for five weeks, until October 14th, a move critics saw as an attempt to stop MPs from preventing Britain leaving the EU on October 31st. Scotland’s highest court of appeal ruled the suspension unlawful, but Johnson appealed.
Hedge funds trimmed their short positions on the Pound to $6.73 billion in the week to September 17th, according to the Commodity Futures Trading Commission. However, the amount remained near the two-year high of $7.81 billion it reached last month.
Euro zone business growth stalled this month, a survey showed on Monday, dragged down by shrinking activity in powerhouse Germany, where a manufacturing recession deepened unexpectedly.
Monday’s downbeat survey results come less than two weeks after the European Central Bank pledged indefinite stimulus to revive the 19-country currency bloc’s ailing economy.
IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI), sank to 50.4 in September from 51.9 in August and was below all forecasts in a poll that had predicted a reading of 51.9.
The Euro zone economy is not showing any convincing sign of a rebound and a persistent downturn in manufacturing risked infecting the rest of the economy, European Central Bank President, Mario Draghi, said on Monday.
15.00 – USD: CB Consumer Confidence; Forecast at 134.1 against previous of 134.5.