UK
The pound slipped back a little against the US dollar after a strong week of
gains as a result of the latest PMI data for June. 

UK new car sales rose at the fastest rate for nine years. British consumers
exploited cheap car finance deals to buy models with lower running costs
as sales rise 10.6% in first half of 2014 to 1.28m. Again supporting confidence
in the economy and demonstrates the banks optimism in lending at a wider

UK
The pound slipped back a little against the US dollar after a strong week of
gains as a result of the latest PMI data for June. 

UK new car sales rose at the fastest rate for nine years. British consumers
exploited cheap car finance deals to buy models with lower running costs
as sales rise 10.6% in first half of 2014 to 1.28m. Again supporting confidence
in the economy and demonstrates the banks optimism in lending at a wider
level. the market is on track for 2.4m new car sales this year, up more
than 6% on last year.

The yield premium of British over German government bonds has reached its
highest level since 1997. This is because the first UK rate hike is on the
cards. Economists polled by Reuters believe it
will probably come early next year but now attribute a 40% chance to a
rise by the end of this year, compared with 30% at a previous survey in early
May. Showing people are slowly starting to sway towards it potential
happening a lot sooner than initially thought.

EUR
The euro is under pressure after the ECB’s message Thursday that it could still
opt for quantitative easing to fight low inflation. Also German factory
orders disappointed in June with a 1.7% fall, but some of this is payback for a
strong figure released in May. 

INR
Rupee fell the most in more than two weeks on speculation oil refiners stepped
up dollar purchases for crude shipments from abroad. The rupee also
weakened due to concerns inadequate seasonal rainfall will hurt farm output and
delay a recovery in the economy.

Today: 
We have had some disappointing  industrial production figures
from Germany which went from -0.3% to -1.8% month on month. Industrial
output has now fallen for three months in a row, the first time since the
summer of 2012

Key Announcements:
No further announcements today

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