Levels on the majors are not a million miles from where they closed out Friday in North American.
Risk appetite remains in pretty good shape at the start of the week, and this plus ongoing concerns about the burgeoning U.S. deficit and it’s funding, and the dollar’s status as global reserve currency, continue to weigh on the greenback.
That said, Asian sovereign sell interest has emerged in EUR/USD up around 1.4300 which suggests the dollar isn’t just going to fall out of bed at the start of the week.
The CLSA China PMI rose to a seasonally adusted 52.8 in July from 51.8 in June, the highest level in a year, and this will be helping underpin general risk sentiment.
Barclays and HSBC report their half year results this morning, which will be of particular interest to cable and sterling cross traders.
European economic data due;
06:00 GMT: German retail sales (June) expected 0.5% m/m, 0.9% y/y
07:30 GMT: Swiss PMI (July) expected 43.6
07:45 GMT: Italian PMI manufacturing (July) expected 44.3
07:50 GMT: French PMI manufacturing (July-final) expected 47.9
07:55 GMT: German PMI manufacturing (July-final) expected 45.2
08:00 GMT: Euro zone PMI manufacturing (July-final) expected 46
08:30 GMT: UK PMI manufacturing (July) expected 47.8
