The dollar fails to catch a break so far in European morning trade
But the pace of the decline in the greenback isn’t really extending all too much outside of cable, which is continuing to push towards the 1.3500 handle.

Forex news from the European trading session – 1 September 2020
Headlines:
Markets:
– GBP leads, CHF lags on the day
– European equities higher; E-minis up ~0.3%

German economy minister, Peter Altmaier, says that the economy is in an ‚unexpectedly fast‘ V-shaped recovery
– 2020 GDP forecast revised to -5.8%; previously -6.3%
This confirms the reports from earlier today but Altmaier is offering relatively upbeat remarks surrounding the economic situation in general.

Latest data released by Eurostat – 1 September 2020
The ECB may still afford to wait for now before reacting but a more severe drop in price pressures and inflation expectations potentially deanchoring may prompt some form of action. If anything else, don’t expect them to be too happy with a rising euro.

Latest data released by Destatis – 31 August 2020

Latest data released by Destatis – 31 August 2020
This just reaffirms expectations that the German national reading should see headline annual inflation come in similar to July at around -0.1% y/y or 0.0% y/y. As mentioned earlier, all the state readings generally just give out the impression that price pressures remain more subdued in August

The yen trails on a slightly more positive risk appetite
There is little change for the most part and the technical picture since the end of last week remains largely intact as we get the new week underway.

Asahi News reports on the matter
Shigeru Ishiba is likely also a strong contender for the Japanese prime minister post with opinion polls showing he was the people’s choice to succeed Abe.

Nikkei and Reuters both reporting on the matter, citing sources
reported

Closing changes for the main bourses
On the week:
Europe weekly:
I that this party was going to last a long time.
warned you back in June