Although the United States celebrated Labor Day yesterday, which implies a break from the work of the righteous, the pound labored to glory. Its rapid decline was due to an imprudent opening of the mouth of Theresa May. The Prime Minister of Great Britain proudly declared that the United Kingdom will adhere to a tough stance and will not make any concessions to the European Union. But while no one has heard the details of this mythical proposal, which Europe is ready to go to Foggy Albion. So it's completely unclear how to interpret the words of Theresa May. Whether in London they already know some details, and they are not so wonderful, or the British are ready with the obstinacy of the ram to move along the planned path, not paying attention to the fact that the necessary turn has long been missed. In any case, neither one nor the other option promise anything good.
Do not forget about the macroeconomic data, which, of course, did not have such a value against the background of the statements of Theresa May, but over time they will be remembered. So, the British index of business activity in the manufacturing sector declined from 53.8 to 52.8. In Europe, it also declined, from 55.1 to 54.6.
Today, there are data on producer prices in Europe, whose growth rates should accelerate from 3.6% to 3.9%. Earlier, it was assumed that they would accelerate to 4.3%, but after preliminary data on inflation showed a slowdown in consumer price growth, the forecasts were immediately revised. In any case, the acceleration of producer price growth gives hope that inflation will not slow down much and the ECB will not have any reasons for another extension of the quantitative easing program. In the US, also expected to decline in the index of business activity in the manufacturing sector, from 55.3 to 54.5. Along with this, we expect an increase in construction costs by 0.5%, which, in the face of the continuing decline in home sales, looks like the light at the end of the tunnel, and we will soon see a rise in sales. The total sales of vehicles may remain unchanged.
The euro/dollar currency pair, after a slight rollback, regained a downward movement, breaking at least August 31, with an attempt to lock below 1.1583. It is possible to assume a further decline, where the range level is 1.1510 / 1.1550 under the quotation.
The pound/dollar currency pair, without reducing the speed, continued the downward movement, leaving behind the impulse candles. It is possible to assume a further decline towards 1.2800, but it is worthwhile to understand that there is already a premise of overselling.
