Euro fell in European trade on Tuesday against the pound on track for the second loss in three days, away from five-month highs on active profit-taking.

Now investors await important UK and European data later today on the manufacturing and services sector. 

EUR/GBP

EUR/GBP fell 0.1% to 0.8702, with a session-high at 0.8713, after rising 0.1% yesterday, resuming gains and approaching five-month highs at 0.8740.

Major Sectors

Later today, major data on economic performance in the UK and Europe will be released, important to gauge the likely path ahead for monetary policies. 

Central Banks 

The European Central Bank is convening this week, widely expected to maintain interest rates unchanged.

Bank of England as well isn't expected to raise interest rates again this year, and could actually be one of the earliest central banks to cut interest rates next year. 

Interest Rate Gap

The current interest rate gap between the UK and Europe stands at 75 basis points in favor of UK rates, the lowest since March 2022. 

Gold prices fell on Monday as the dollar fell against a basket of major rivals, as the precious metal faces pressures as US treasury yields spike.

Corporations continue to report their quarterly results for the third quarter of 2023, with both Tesla and Netflix releasing results.

And this week, Alphabet, Amazon, Meta, and Microsoft will all release results.

Middle East tensions continue to cast shadows on global markets as the Israel army prepares to invade the Gaza strip.

US 10-year treasury yields continue to surge above 5%, scaling 2007 highs. 

Otherwise, the dollar index fell 0.5% as of 18:21 GMT to 105.6, with a session-high at 106.3, and a low at 105.6.

Gold spot prices fell 0.3% as of 18:21 GMT, or $6.8, to $1987.6 an ounce. 

Most US stock indices were flat on Monday after a negative opening, as US treasury yields continue to power up.

Corporations continue to report their quarterly results for the third quarter of 2023, with both Tesla and Netflix releasing results.

And this week, Alphabet, Amazon, Meta, and Microsoft will all release results. 

Middle East tensions continue to cast shadows on global markets as the Israel army prepares to invade the Gaza strip. 

On trading, Dow Jones fell 0.2%, or 55 points as of 15:30 GMT to 33,071, while S&P 500 fell 0.1%, or 4 points to 4220, as NASDAQ rose 0.1% to 12985. 

International benchmark fell on Monday for a second session off three-week high on active profit-taking.

Traders continue to focus on the deteriorating situation in the Middle East amid diplomatic efforts to contain the struggle. 

Brent 

Brent fell over 0.8% to $91.13 a barrel, with a session-high at $92.41, after losing 0.9% on Friday, the first loss in four days away from a three-week high at $93.75. 

Global oil prices rose 1.1% last week, the second weekly profit in a row amid concerns of disruptions to the Arab Gulf crude supplies due to the Hamas-Israeli war. 

Tensions 

Oil prices tapered off today amid diplomatic efforts to contain the Israeli-Hamas war. 

EU leaders are expected to call for a humanitarian truce this week to allow for aid to reach Gazans, with French, Dutch leaders expected to visit Israel this week. 

Aid trucks already started going into Gaza last weekend. 

US Sanctions on Venezuela

Press sources indicated the US government has initiated negotiations with the Venezuelan opposition, in a step that could lead to reduced sanctions.

Since 2019, the US imposed heavy sanctions on crude exports from Venezuela, a member of the OPEC organization, following Maduro's election win in 2018, which was considered falsified due to acts against human rights.

The US government is now seeking ways to improve and increase crude supplies into the market, in order to reduce prices and pressure OPEC + members.