Main data releases will be German ZEW and UK inflation.
The German ZEW index has been very weak lately, falling in August to the lowestlevel in almost two years. We expect a slight further decline in September on the backof a continued negative news flow.
UK inflation is expected to decline slightly to 1.5% in August from 1.6% in July,while core inflation should remain flat at 1.8%, slightly below Bank of England’starget of 2%.
Otherwise focus will continue to be on the developments in the Ukraine crisis andpolls on Thursday’s Scottish referendum.
In Sweden focus will be on SDP’s attempt to form a government in the hungparliament.
Read the full report: FX Daily