The stock market weakened yesterday with the IMF report not helping, with the fund also mentioning that they didn't know how low the housing market will go. Due out today is Consumer Confidence expected at 50 from its previous 50.4 in June.
The Euro strengthened earlier in the session but soon came back as markets are waiting for data to be released this week. Recent data has not been good for the Euro and therefore the question of decoupling the Euro from US dollar has risen again. The Euro weakened further later in the session as German Consumer Confidence fell to 2.1, well below its expected 3.5.
Sterling had a good day yesterday on the back of the US and Euros data and situation at present, this helped Sterling to gain ground overall against all the majors. Due out today is Consumer Credit, CBI Orders both expected to be weaker than previous. Also due out today is June Mortgage Approvals expected to be lower and lending expected to be lower from 4.07Bln to 3.85Bln.