The Pound made gains against the Euro while declining against the Dollar as investors fear funding concerns in the Eurozone. Domestically, British mortgage approvals were lower-than-expected at 49.8K in May from its foretasted 51.0K.

Also to note House prices rose again in June but only by 0.1%, according to the Nationwide building society. The rise follows a 0.5% increase in May, with the average property in the UK now costing more than £170,000.

The Dollar made gains against Euro and the Pound following a nationwide strike in Greece and an overstated economic indicator from China decreased investors appetite for riskier assets. Around 10,000 people protested across Athens creating instability in the region. Meanwhile, a statement released by the Conference Board cited a calculation error in China’s leading economic indicator which reported a rise of 1.7% against the corrected 0.3%. Daunting reports in the global economy increased risk aversion and a flight to the safety of the dollar.

The Euro declined against the Dollar and the Pound as union strikes hit Greece and Spain. The fifth major strike led by union protestors, dampened tourism and public transportation. In Spain, workers shut down Madrid’s metro system in protest of a 5% public sector pay-cut. Further weighing on the euro are the concerns about the funding situation of banks who are about to repay 442 billion Euros to the European Central Bank. Current events have raised more concerns over the recovery in the Eurozone.

Data released 29.06.10

EU      10.00 Flash HICP (June)

US      13.15 ADP Employment Report