The Pound remained relatively unchanged against the Euro and the Dollar yesterday as all eyes remain on either the solvency crisis in Europe or the potential of US debt default.
Also to note it is expected that the Bank of England will be push a rate hike further into the future. Which is now anticipated anywhere between February and August 2012.
The Dollar remained relatively unchanged yesterday even though concerns about the US debt continue, The Dollar is likely to weaken against other safe haven currency such as the yen and Swiss franc, particularly President Obama recent speech also didn’t help where he made it clear that there was no deal in the pipeline and that there are little sign of any near term resolution.
The Euro remained relatively unchanged yesterday even though the Euro is expected to benefit from a round of general dollar selling on the back of the impasse in the US debt talks.
Data released 26.07.2011
UK 09.30 Prelim GDP (Q2)
US 14.00 Case Shiller House Prices (May)
US 15.00 Consumer Confidence (July)
US 15.00 New Home Sales (June)