The following data were issued
06:40 France Consumer confidence (July) -48 -45 -46
06:45 France PPI (June) 0.7% 0.8% 1.3%
06:45 France PPI (June) Y/Y 7.3% 7.4% 6.7%
08:30 UK M4 money supply (June) final 1.8% 2.0% 2.0%
08:30 UK M4 money supply (June) final Y/Y 11.4% 11.5% 11.5%
08:30 UK M4 lending (June) final, bln +46.1 +45.9 +45.9
08:30 UK Consumer credit (June), bln +0.9 +1.1 +1.3 (+1.4)
10:00 UK CBI retail sales volume balance (July) -36% -15% -9%
The dollar retreated a bit from a one-week low against the euro, but holds under pressure on speculation an industry report today will show the U.S. housing slump deepened, increasing the risk credit-market losses will widen.
Signs of a weakening economy may deter the Federal Reserve from increasing borrowing costs, diminishing the allure of dollar-denominated assets.
The pound dropped sharply in value against other currencies after a survey by the Confederation of British Industry showed UK high street sales are falling off the charts.
In its distributive trades survey, the CBI said the balance of retail sales came of -36% (the lowest reading since the survey began in July 1983) versus June's -9%. Analysts had expected a more modest fall to -15%.
EUR/USD opened in early Europe around $1.5749. The rally was capped at $1.5759, with the rate again easing back under $1.5730, ending the morning holding around $1.5735. Stops under $1.5725, bids $1.5700, $1.5680, offers $1.5760, $1.5785.
GBP/USD opened early Europe at $1.9949. Cable slipped to session lows under $1.9900 amid weak CBI report. Early US trade opened with cable extending lows under $1.9880.
USD/JPY opened in early Europe around Y107.42. Rate then able to break above Y107.70 ahead of the US open. Strong offers Y108.10/20, Y108.40/60, stops above, bids Y107.30/20.
At В 14:00 GMT the focus will be on US consumer confidence data. Analysts predict index rose to 50,4 in July after 50,1 month earlier.