Pound Sterling continued it’s downward trend against The USD, struggling to get back to the 1.25 levels, after poorer than expected economic growth figures in The UK.

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Sterling slipped this morning and is on track for its biggest daily drop in a week as UK economy contracted by 0.5% in July, a worse than expected 0.2% contraction in gross domestic product.

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The Pound suffered this morning, trading narrowly lower against the USD as an upbeat market mood was offset by UK recession woes.

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As the first full week of the month fets into full swing- we have a pretty quiet Monday with it being Labor day in the U.S- the only key release will be a speech from ECB President Lagarde, markets are quite torn on whether the ECB will raise rates again so this speech may provide some insight into the ECB’s thoughts before the next rate decision.

Inflation is the main talking point today with Euro-Zone inflation due out at 10am this morning. Yesterday Germany released their August Inflation figures, with a slight decline from 6.2% in July to 6.1% last month.