Euro dips below $1.17

The euro’s bounce against the dollar proved short-lived with the single currency under pressure for most of yesterday’s session and falling to around $1.1685 overnight. Heightened political tensions in Spain may have played a role, while the minutes of the ECB’s early September policy meeting published yesterday showed members were pretty concerned about the speed of its previous move higher (the euro had risen to almost $1.20 at that time)

The ECB minutes also show that members believe substantial monetary support is needed to get  Euro area inflation back to target and suggest the central bank will only gradually and very cautiously adjust its policy stance in response to the better growth performance in the zone

Sterling remains under pressure against both the euro and the dollar, trading at close to 89.5p and just over $1.30 respectively, with the messy political situation in the UK and on-going Brexit-related uncertainty weighing on the currency

Fed members Harker and Williams say an interest rate hike remains on the cards for December with the latter also saying that three hikes next year would represent a ‘gradual’ pace of increase

The US employment report is the key release today although hurricanes Harvey and Irma may impact the headline number – the consensus expects job gains of just 80,000 in September, less than half the pace seen in recent months