The Pound made gains against the Euro and the Dollar yesterday where there was no eco news behind the price move, the trading was order-driven and technically inspired. So, sterling continued to enjoy the same factors that were at work last week. The combination of profound austerity measures while at the same time the BoE turned less soft on monetary policy, created a sterling positive environment.

The Dollar declined against the Pound while making gains against the Euro yesterday as a string of lacklustre economic data emanating from the US has all but extinguished the likelihood that the FOMC would be raising interest rates anytime during the next couple of months.

The Euro declined against the Pound and the Dollar as investor sentiment soured on signs that the German economy continues to struggle. News that ZEW economic sentiment in Germany dipped sent the EUR to the lower end of recent ranges. Germany, Europe’s largest economy and a bellwether for the economic recovery, highlights the challenges the Eurozone faces in emerging from its recession. The weak economic report comes amid lingering concerns about Greece and other E-16 countries, which are straining under budget deficits.

Data released 29.06.10

UK      09.30 Consumer Credit (May)

Mortgage Applications

EU      10.00 EC Business Climate Index (June)

EU      10.00 EC Economic Sentiment Survey (June)

Consumer/ Industrial/ Services

US      14.00 Case Shiller House Price Index (April)

US      15.00 Consumer Confidence (June)