The purchasing managers reported that this was a lowest figure since May 2005. This did not help the recent speculation and almost a certain guarantee that the ECB will be increasing their rates by 25 basis points in the next rate meeting, which has therefore put pressure onto the ECB to which step to take, either increase it anyway or keep the rates on hold contradicting their previous comments.
Due out today for the US dollar, June's Consumer Confidence, expected to drop 57.2 to 56.4, Home Price Index, expected to be negative at -15.9% year on year.
Due to the negative data for the Euro Zone, the US dollar had a rally against all the major currencies including Sterling which was affected on the back of the date from Euro Zone.
Due out today for the Euro, is the German Consumer Confidence figure along with French Consumer Spending.
Sterling was hit again by Rightmove's market news that the market had dropped by 1.2% year on year, which again put a damper on the sterling strength as it showed the housing market was not getting any better.