Daily Market Report – 21/07/2014

GBP
The housing market in the UK reported a dip for the second time in as many
months. The number of homes reaching the market for sale fell, as did the
average asking prices, falling  0.4%.

This could signal some weakness for the UK economy, which may be reflected in
Pounds performance moving forward.

Much of the UK economy is funded by overseas property investment, with
GBP current strength being sighted as one of the major contributing

GBP
The housing market in the UK reported a dip for the second time in as many
months. The number of homes reaching the market for sale fell, as did the
average asking prices, falling  0.4%.

This could signal some weakness for the UK economy, which may be reflected in
Pounds performance moving forward.

Much of the UK economy is funded by overseas property investment, with
GBP current strength being sighted as one of the major contributing
factors to the slump due to unfavourable exchange rates making it more expensive
for overseas investors to take purchase property in the UK.

Deloitte released consumer confidence figures, which showed confidence in the
UK’s recovery is growing at its fastest, with the growth now spreading to parts
of the country that it had not previously reached. 

EUR
Economists suggest Greece will need to top up the 240 billion euros of loans it
has received from Europe and the International Monetary Fund since 2010. A
further Greek bailout would signal weakness for the Euro.

More worrying for the Eurozone was that German Bunds were the only bonds
showing any purchase appetite during the previous two months. From previous
auctions Bond appetite has proved a reliable barometer of economic strength.

USD
The USD gained against a basket of currencies towards the end last week. This
was largely attributed to the geo-political issues that are currently grabbing
the headlines in The Middle East and Ukraine .

This dollar  strength  was despite the US Michigan consumer
confidence index posting negative data. With further escalation of the
geo-political conflicts over the weekend, we may see the Dollar continue
to strengthen. 

Key Announcements:
None

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