The Pound made gains against the Euro and the Dollar as the Pound finds itself undermined by capital flight on heightened investor risk aversion. Also weighing on the Pound are concerns over the negative impact of fiscal tightening on the U.K economy, and the 0.6% on-month drop in the U.K. Right move mid-July house price index versus June’s 0.3% increase.
The Dollar declined against the Pound and the Euro as the Dollar continues to suffer from poor economic data that has pressured it to its lowest levels in over 2-months against the majors.
All eyes are expected to focus on the pace of US economic activity as the second half of 2010 gets under way.
The Euro made gains against the Dollar while declining against the Pound due to mixed views on Eurozone sovereign debt concerns. On one side Smooth government debt auctions in Greece, Portugal and Spain have eased concerns but on the other there is News that the IMF and EU are to suspend a review of Hungary’s funding problem and Moody’s downgrade of Irish debt.
The fate of the euro could also depend on the results of the banking stress tests which are due to be released later in the week.
Data released 19.07.10
US 15.00 NAHB Home Builders Sentiment (July)
