The US dollar had some of its gains from Friday reversed as investors looked to book profits from the dollar’s recent strength.

Support for a stronger US dollar still remains as expectations still persist for the Fed to start scaling back stimulus following the better than forecasts data from last week. Ben Bernanke is set to speak on economic policy in Boston on Wednesday and we also have the latest Federal Open Market Committee minutes of its June policy meeting.

The US dollar had some of its gains from Friday reversed as investors looked to book profits from the dollar’s recent strength.

Support for a stronger US dollar still remains as expectations still persist for the Fed to start scaling back stimulus following the better than forecasts data from last week. Ben Bernanke is set to speak on economic policy in Boston on Wednesday and we also have the latest Federal Open Market Committee minutes of its June policy meeting.

On the data front, German industrial production fell twice as much as expected in May, falling by 1% instead of a forecasted fall of 0.5%. Germany also suffered a 2.4% fall in exports in May, the biggest drop since late 2009. However imports rose by 1.7% in May beating an expected rise or 0.5%.

The euro zone was boosted last night an EU finance ministers agreed for Greece to receive its next trance of bailout funds – in return for making further cuts to its public sector workforce. As a result, Greece will receive €2.5bn of loans this month, with a further €500mn arriving in October.

The pound is being buoyed this morning as industrial production and manufacturing production in May is forecasted to improve from April adding to evidence that the UK recovery is gathering pace. The National Institute of Economic and Social Research will also be releasing the UK’s GDP estimate for the three months leading up to June.

The International Monetary Fund will also be in focus this afternoon when it releases its World Economic Outlook Report, providing investors with forecasts for economic growth for countries across the globe.

Key Announcements:

9.30am – GBP – Industrial Production (May): Expected to improve to 0.2%.

9.30am – GBP – Manufacturing Production (May): Expected to improve to 0.3%.

9.30am – GBP – Goods Trade Balance (May): The deficit is set to worsen to £8.47bn.

14.30pm – IMF – World Economic Outlook.

15.00pm – GBP – NIESR GDP Estimate: Previous figures showed a growth of 0.6%.