The Pound traded within a narrow range yesterday despite a survey revealing British house-building accelerated last month at the fastest rate since November 2003, leading to a record pace of job creation and a shortage of supplies. The monthly purchasing managers' index (PMI) figure which represents the wider construction sector revealed house-building was the strongest category in the PMI.
Also in the headlines were reports Prime Minister David Cameron will toughen his stance on Israel in the wake of a number of attacks that hit UN-run schools in Gaza. Global criticism of Israel’s tactics has heightened in recent days, prompting the UK government to review all export licences of arms and military goods to the country.
In the Eurozone yesterday European investors woke up to another bank rescue, after troubled Portuguese lender Banco Espírito Santo received an emergency bailout on the weekend. Portugal is putting almost €5bn into Banco Espírito Santo as part of a bailout plan that will see the bank divided into a good bank for its healthy business and a bad bank for its toxic assets. The news affected the Euro on revelations Portugal's bank rescue fund is now close to empty, meaning any further bank failures could need taxpayer cash.
08:55 BST – EUR – Markit services PMI (Jul) – Expected to come in a 56.6 from 54.6 which is may see some euro strength off the back off
09:30 BST – GBP – Markit Services PMI (Jul) – Expected to rise by 0.2 from
10:00 BST - USD – Retail sales (YoY) (Jun) – Forecasted to come in at 1.2% from 0.7%
14:45 BST – USD – PMI composite (Jul) – Pervious was 61 with no forecast
15:00 BST - USD – Factory Orders (MoM) (Jun) – Expected to come in at 0.6% from -0.5%
15:00 BST – USD – ISM Non-Manufacturing PMI (Jul) – Expected to rise by 0.3 from 56
Our dealers are available via e-mail (email@example.com) or by phone (0207 220 8181).