Euro Zone Economic Confidence figures are expected to tick up in June, though as we have noted previously, some recovery in sentiment is to be expected as governments’ fiscal efforts filter into the broad economy; the big question at this stage is whether growth is sustainable after stimulus cash dries up. This suggests the Euro is likely to look past the data docket with near-term price action taking directional cues from trends in risk appetite, with EURJPY and EURUSD still 83% and 88% correlated with the MSCI World Stock Index, respectively.

Turning to the UK, Net Consumer Credit is set to remain at 0.3 billion pounds in May, unchanged from the previous month, while Mortgage Approvals grow by 46k, extending a rebound from record lows in November 2008 for the sixth month. The upswing may prove little more than a correction, however: Rightmove Plc reported last week that house prices fell for the first in five months in June as banks raised borrowing costs in anticipation of a stabilizing global economic environment, hinting that credit growth will stumble in the months ahead. Barring a sharp deviation from expectations, British Pound price action is unlikely to dwell too deeply on these releases, focusing on cues from stock and commodity markets to set directional momentum.

This entry was posted on Monday, June 29th, 2009 at 1:16 am and is filed under British Pound, Euro, US Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.