The US dollar was seen trading on the back foot on Monday with the US markets closed on account of Columbus Day holiday. The euro and the British pound were seen posting some modest gains as a result. In the UK, data from the ONS showed that the labor costs in the UK were seen rising and higher than previously estimated.
This helped to support the British pound as investors saw this as a positive for the Bank of England. The central bank is expected to hike interest rates in a couple of months. Economic data yesterday was limited to the German industrial production which posted a strong rebound as industrial output rose 2.6% on the month.
The Eurozone Sentix investor confidence data also increased from 28.2 previously to 29.6. Looking ahead, a somewhat busy day today will see the release of the UK’s industrial, manufacturing and construction output data. FOMC Member, Kashkari will be speaking today while from the Eurozone, industrial production figures from France are expected.
