GBP:
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

GBP:
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.

EUR:
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.

Key Announcements:

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
57.7

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

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