UK
Government borrowing was £13.3bn in May, higher than May 2013 when it was £12.6bn.
This was also much higher than forecasts suggested .

Treasury coffers were partly boosted by surging stamp duty land tax revenues,
which were 28% ahead of last year at £1.2bn and underlined the sharp rise in
the number of house sales over the past year.

UK
Government borrowing was £13.3bn in May, higher than May 2013 when it was £12.6bn.
This was also much higher than forecasts suggested .

Treasury coffers were partly boosted by surging stamp duty land tax revenues,
which were 28% ahead of last year at £1.2bn and underlined the sharp rise in
the number of house sales over the past year.

USD
A gauge of the dollar dropped toward the lowest in a month before data this
week that could show U.S. manufacturing and new home sales slowed, supporting
the case for the Federal Reserve to hold rates near zero.

Data today may show new home sales grew 1.6% in May from a 6.4% gain the
previous month, and a June 25 report may indicate the U.S. economy contracted
1.8 percent in the first quarter, according to separate surveys.

EUR
Wolfgang Schaeuble, Germany’s finance minister, has refused to speculate about
any further measures the European Central Bank may consider to tackle the
threat of deflation. Earlier this month the ECB cut interest rates to a
record low, imposed negative rates on bank deposits, and announced €400bn
(£319bn) of cheap funding.

Austrian Central bank chief Ewald Nowotny stated over the weekend that the
European Central Bank is unlikely to raise interest rates until at least 2016.
With inflation at 0.5% and well below the target rate of 2% interest rates will
remain low to help encourage inflation in the Eurozone

Today
We had Good news out of China this morning as its factory sector has
returned to growth for the first time in six months. 

The PMI report, which tracks activity across thousands of small firms in China,
rose to a seven-month high of 50.8 in June, up from 49.4 in May.That’s the
first time in 2014 that the PMI has come in above the 50-point mark that splits
expansion from contraction

This afternoon we have US existing home sales for may and PMI
manufacturing for June both expected to show a slight improvement from the
previous month.  

Key Announcements:
14:45 – USD- Markit PMI Manufacturing (June) improve from 56.4 to 56.5 
15:00 – USD- existing home sales (May) expected to increase from 4.65m to
4.73m MOM.

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