httpvh://www.youtube.com/watch?v=Bs8vfm8bM74

Angela Merkel helped send the euro lower after she noted that the upcoming European Union summit will not be the silver bullet for Greece that some have hoped, adding that a Greece’s problems shouldn’t be included on the meeting’s agenda as Greece were yet to ask for explicit financial help. While yesterday afternoon saw the euro move back from its lows of the day against the dollar, it was under pressure again in early morning trading once again

The Obama health care reform was generally received well by equity markets in the US, the S&P 500 finishing up 0.5%. Some dollar selling was evidenced as investors moved back into riskier assets, contented that the reforms would not restrict markets too negatively.

Inflation figures from the UK due out this morning are set to be the main risk event of the day, a move lower in consumer prices is likely to be a sterling negative, as it would delay the chances of monetary policy tightening over the year

As the market positions itself for Alistair Darling’s budget on Wednesday likely changes include targeting offshore tax evasion in an effort to raise the flagging tax intake, and raising part nationalised banks Lloyds and RBS’s lending targets by £90bn over the year.