European session: the franc and pound fell
07:55 Germany PMI (June) seasonally adjusted 54.6
08:00 EU(17) PMI (June) 52.0
08:30 UK CIPS manufacturing index (June) 51.3
09:00 EU(17) Unemployment (May) 9.9%
The pound fell to a 15-month low against the euro as a report showed U.K. manufacturing growth unexpectedly slowed in June, adding to evidence that the economic recovery is faltering.
A gauge of factory output dropped to 51.3 in June from 52.1 in May, Markit Economics and the Chartered Institute of Purchasing and Supply said today. That’s the lowest level since September 2009.
Britain’s currency slid against the euro yesterday on bets a faltering economy will limit policy makers’ ability to raise interest rates, at the same time that the European Central Bank lifts borrowing costs to curb inflation. A report yesterday showed U.K. consumer confidence fell more than economists forecast in June while the Bank of England’s Credit Conditions Survey said mortgage demand will drop in the third quarter.
The Swiss franc weakened against 16 of its major peers as investors sought higher-yielding currencies amid confidence policy makers and bankers have staved off a Greek default.
EUR/USD: the pair holds in $1.4465-$ 1.4550.
GBP/USD: the pair shown high in $1.6090 area then decreased in $1.6000 area.
USD/JPY: the pair holds in Y80.55-Y80.90.
In US today's attention will be on final reading of Michigan sentiment index, ISM Mfg PMI and Construction spending.