UK Consumer Confidence is at a fresh 18 year low according to a GFK survey released overnight. A survey from Hometrack also showed that house prices in the UK have fallen for the ninth consecutive month leaving them 3.2% on a month by month figure. Weakness in the dollar however has allowed cable to the keep Friday’s momentum going. Dollar sentiment is being hurt by falling US stock markets and rising oil prices and has allowed markets to factor out the recent hawkish interest rate noises. The euro is also stronger against the dollar this morning.

 Today’s data will hopefully solidify thoughts as to the ECB’s rate decision on Thursday. Europe’s HICP figure, the Eurozone’s main inflation reading, is expected higher after recent rises in inflation measures throughout the member states.

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Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.