The Confederation of British Industry's quarterly survey of the sector showed that levels of business volumes and values remained weak, and neither consumer nor business services firms are positive about business expansion over the coming year.

Euro (EURO) The euro softened after data showed confidence in the economy weakened more than expected in both Germany and France, the heart of the euro zone's economy. The GfK consumer confidence indicator fell to 4.9 points in June compared with 5.6 points in May and against analysts' forecasts for an improvement to 5.8. In France, the Insee business confidence dropped to 102 in May from 106 in April, beyond estimates for a more modest fall to 104.

The releases pushed the euro lower against other major currencies, but analysts warn these losses are likely to be short-lived ahead of key German inflation data later Tuesday, which is expected to hit a record high. German CPI inflation is forecast to rise to 3.6 percent in May, matching March's historical high.

Dollar (USD) The euro's performance against the dollar is likely to be boosted by data in the United States as well, where consumer confidence is expected to have dipped to 60.0 in May from 62.3 in April; new home sales are forecast to have fallen to an annualised 522,000 unit rate in April following a 526,000 unit rate in the previous month.

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