GBP:
U.K. manufacturing output increased for a 15th consecutive month in May. As a
result Sterling gained for the first time in seven days. GBP gained .2% against
EUR throughout London trading.

The gains were minimal due to Mortgage approvals falling to 62,918 from a
revised 66,563 in March. That’s the third monthly decline after they reached a
six-year high in January
 
EUR:

GBP:
U.K. manufacturing output increased for a 15th consecutive month in May. As a
result Sterling gained for the first time in seven days. GBP gained .2% against
EUR throughout London trading.

The gains were minimal due to Mortgage approvals falling to 62,918 from a
revised 66,563 in March. That’s the third monthly decline after they reached a
six-year high in January
 
EUR:
The Euro currency lost against its major counterparts during trading Monday.
This was prompted by poor German figures out in the morning session. German CPI
fell by .1% month on month and only posted .9% growth year on year missing the
forecast. 

The market has started to price in  the fact that Mario Draghi will have
to confront the threat of deflation this week as he prepares to kick start the
economy. Measures ranging from QE to interest rate cuts are widely anticipated,
should these be utilized we should see a very volatile and potentially weaker
Euro.
 
SEK:
GDP in Sweden fell .1% in the first quarter, but more cause for concern is the
below target CPI figures. Sweden’s central bank faces a “pretty serious
problem” in tackling below-target inflation, Deputy Governor Per Jansson said.
This is the second Scandinavian nation to release negative sentiment in the
past two months. Expect some movement, due to possible government intervention.
 
RUB:
Since Putin annexed Crimea in March, Russian stocks have become the most
volatile since 2009. EUR/RUB volatility swings are now the most extreme on
record while expectations for fluctuations in the currency against its
emerging-market peers are at the highest in two years.

Sanctions are putting Russia at risk due to the fact that Russia is an economy
built on commodity exports. Expect a more cooperative Russia and a more stable
Rouble in the medium term.
 
Today:
Reserve Bank of Australia left interest rates unchanged at 2.5%. The move was
widely expected by economists, although borrowers have been warned to brace
themselves for interest rate increases next year as the non-mining sectors of
the economy start to pick up pace.
 
The big news out today comes from Europe with CPI figures due at 10AM. If
figures disappoint we would expect further weakness from the Euro. This could
prompt a large movement and pricing in of a potential negative interest rate
decision for Europe due on Thursday.
 
 
Key Announcements:
10:00 – EUR – CPI Inflation for May expected to remain unchanged at 0.7%
10:00 – EUR- Unemployment Rate for April expected to remain unchanged at 11.8%

Our dealers are available
via e-mail ([email protected]) or by phone (020 3051 1226).