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Dollar subdued today

This is sure to cause volatility in the market on the lead up to this data. Warren Buffet, joined a debate about the US economy, saying it was in recession and that the economy contraction will be deeper and longer than people expect. Oil prices surged again due to the situation in Nigeria and the pipeline problem in UK with the barrel reaching US$119.93. Due out today for the US is the Home Price Index, which is expected to be lower.

For the Euro, the German inflation figure fell from 3.1% to 2.6% in April, giving the ECB confidence that it may have seen the peak of inflation at 3.6%.  German Consumer Confidence rose to 5.9 in May.  Investors are holding off positions in the market until data is released tomorrow from the US.  Due out tomorrow is Euro Zone CPI and German CPI expected to be lower than previous.

Sterling managed to hold is ground despite the 7th consecutive month of falling house prices in April. House prices fell -0.6% in April.

Due to speak today at 9.45 is BoE Governor King along with Blanchflower who was the only one in the BoE committee to vote for a 50 Basis point cut in the next meeting. Main data out today is Mortgage Approvals expected to drop from 73k in February to 69k.