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Dollar saw sharp drop over mortgage lenders news

The US trade balance came in at -59.8 Billion, which beat its expectations of -62.5 Billion. There was also good data from the Michigan Consumer Sentiment which came in at 56.6 from its previous 55.5 in June. There is no data out for the US today.

The euro gained against the Dollar as oil and gold prices hit a record high, with the Euro close to all time highs of 1.6019, this again initiated talks in the market to stem the Euro rise. Due out today for the Euro is the May Industrial Production expected to fall -2.3% down from 0.9% in April.

The sterling gained against the US $ but weakened against the Euro with uncertainty in the BOE decision on interest rate.  The market is weighing up the Bank of Englands next move with regards to the rates as the debate continues about whether the BoE will put the interest rates up to curb inflation or a rate cut to help the economic weakness. The main news out today for the UK is the PPI Input/Output Prices both expected to be lower than previous.

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