Money News Overview Monday 2nd October September 2023

Today is a busy day in terms of economic data with the EU inflation figures due at 10am followed by the ECB’s interest rate announcement in the afternoon.

Currency markets have begun the week with new data showing that the UK housing market has weakened.

Average UK house prices fell by 5.3 percent in the year to September, the latest report from Nationwide has revealed. On a monthly basis, prices were flat in September.

Later in the morning we have the PMI Manufacturing data for France, Germany, the UK and the EU as a whole.

Markets will pay close attention to these figures for September as the figures have been below the 50 level for some time. In the UK, the earlier ‘flash’ report showed that the manufacturing PMI was below the 50 level for a 14th consecutive month. The September reading was the second worst since mid-2020, and it is expected the final reading to show a largely unchanged print.

Looking at the week ahead, GBP is likely to remain vulnerable against the Euro in a week that is very quiet in terms of UK data. Pressure remains on the Pound after the last Bank of England policy announcement where rates were left on hold.

Finally, the US government has avoided a federal shutdown after both House & Senate agreed on a short-term funding deal.

A bill ensuring funding until 17th November received overwhelming support and was signed into law by the US president before a deadline.

Now that the shutdown has been avoided, this week’s key data release – the nonfarms payroll report for September will be closely monitored. The report will certainly be a key input into the Feds decision around whether to raise interest rates in November after September’s pause.