Investors will look ahead to the July US Jobs Report, which is expected to shed more light on the strength of the economic recovery. Estimates for the report fall into a wide range, but most analysts expect the recession in hiring to slow significantly last month.
Markets will also watch Congress, which remains at a standstill in the next round of economic relief after the critical lifeline for millions of unemployed Americans expires.
The BoE will shed more light on Thursday on how quickly it expects the economy to recover from the financial damage caused by the pandemic, but is unlikely to add to the £ 100bn ($ 131bn) stimulus announced in June.
Governor Andrew Bailey is likely to be asked about BoE’s latest thinking on negative interest rates – he is among the central banks fighting against negative interest rates, and analysts believe he will not adjust his borrowing costs until the end of 2021 .
The economic recovery looks likely to drag on, and Britain still has a trade deal with the EU before the Brexit transition period ends on 31 December.
August is the second worst month on the Australian dollar calendar in a decade and begins with some difficult news this year.
Officials in Victoria declared a state of emergency in the capital Melbourne on Sunday after another 671 cases of coronavirus. The most worrying development is that there are 760 cases across the country where employees have no idea of origin.
The new measures include curfew from 20:00 to 5:00 in the morning, and residents have the right to leave their home only for food, work, study or exercise.
Schools will return to distance learning and children’s centers will be closed.
Tensions between the United States and China continue in full force – Trump will soon take action for Chinese software companies that submit data directly to the Beijing government, posing a risk to US national security, Secretary of State Mike Pompeo said on Sunday.
The US election will be on November 3, as planned, Trump advisers say.
The situation with the virus is becoming more serious in Europe, as young people do not follow the measures on beaches and bars.
Junior Trader Daniel Dimitrov