The common currency recovered after falling to a 4-day low yesterday as data showed that the Eurozone flash inflation estimates accelerated stronger than expected. Headline inflation was seen rising 1.5%, more than the median estimates and rising higher from 1.3% in July. Core inflation howeverrose 1.2% as expected.
In the US, the commerce department reported that personal spending accelerated in July with personal incomes rising as well. However, personal consumption expenditure continued to rise unchanged at 1.4% on an annual basis. On the political front, the US Treasury Secretary, Steven Mnuchin said that President Trump is on track to implement the tax reforms by the end of the year.
Looking ahead, the economic calendar today will see the US nonfarm payrolls. According to the median estimates, the US economy is expected to add 180k jobs for August. The unemployment rate is expected to remain steady at 4.3% while the wages are expected to rise 0.2%, slightly slower than 0.3% increase seen the month before. Later in the day, the ISM manufacturing PMI data will also be released.
