Boris Johnson is finally ready to unveil his plan for Britain’s exit from the European Union in the next 24 hours. The Daily Telegraph has reported that the prime minister will present his solution to the Irish backstop issue to EU leaders tomorrow before sending the formal text after his speech to the Conservative Party conference later in the afternoon.
Meanwhile, the Euro fell to a two-year low against the Dollar yesterday, 30 September after Italian and German Consumer Price Indices (CPI) showed a drop in inflation to 0.4 per cent and 1.2 per cent, respectively.
The data caused the EUR/USD pair to fall to 1.0883 – its lowest level since May 2017. The drop comes the day before the release of inflation data for the whole of the Eurozone, which could drag the single currency lower yet again.
Today, market participants will be looking out for the release of Purchasing Manager’s Index (PMI) data, which will show the level of confidence in the manufacturing sectors across the bloc. The expectation is that confidence in the Eurozone as a whole will have dropped from 47 in August to in 45.6 in September. The number below 50 shows contraction.
The European Central Bank (ECB) already said it would restart quantitative easing and introduce a refinancing operation. But what else can the ECB do to alleviate pressure from the single currency and to stem the downturn across Europe?
Across the Atlantic, the US will release the latest manufacturing PMI data at 15:00 (BST). If the release shows improvement in the US manufacturing sector, which has been forecast to improve to 50.1 versus 49.1 in the previous release, the pressure on the Euro will mount.
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