• Japan unadjusted July consumer confidence index 39.4, up from 37.6 in June
  • RICS July house price balance -8.1% from -17.6 in June, highest read since August 2007
  • BRC July like for like retail sales up an annual 1.8%
  • German July wholesale prices -0.5% m/m, -10.6% y/y versus +0.9%, -8.8% in June, and weaker than median forecasts of +0.3%, -9.7% respectively
  • German July final CPI revised marginally firmer, to flat m/m, -0.5% y/y from prelim -0.1%, -0.6% respectively
  • Australian Treasurer Swan: Interest rates in Australia will eventually rise along with global interest rates, as the world recovers from the global downturn
  • Russian Q-2 GDP -10.9% y/y vs -9.8% in Q-1, worse than median forecast of 10.4%
  • French budget deficit -86.6 bln euros at end June vs -32.8 bln year ago – Budget Min
  • BOJ’s Shirakawa: Sees no risk of deflation spiral in Japan. Don’t expect any striking global economic recovery. Western banks still face problems in restoring own health
  • Dutch June manufacturing output -0.5% m/m vs revised +0.6% in May – CBS
  • Mousavi ally says 69 people killed in Iran presidential vote unrest – Newspaper
  • UK June global goods trade gap £6.451 bln, worse than medoian forecast of £6.2 bln deficit. Oil balance swung into deficit of £315 mln from May surplus of £100 mln, summer maintainance work lowering indigenous production
  • UK June house prices -10.7% y/y, better than median forecast of -12.0% – DCLG

Slow morning, infact painfully slow for most of the session. Sterling remains weak ahead of tomorrows BOE quarterly inflation report and June jobs data.

Cable having started of around 1.6490 has given up about half a cent, presently at 1.6445. EUR/GBP is up at .8605 from an early .8575. Gotta think though that tomorrows double event risk is on the way to being discounted.

Overnight releases of decent RICS, BRC data (see above) helped lift cable over 1.6500 in Asia, but it was a short-lived respite. Technical support at 1.6430 has held the downside.

EUR/USD AT 1.4160 is marginally firmer on the day. Having started out around 1.4140 the pairing has been as high as 1.4181 so far, with Middle East buying noted. Sell orders seen up at 1.4190/00.

On the downside buy orders touted in the low 1.41’s with Asian sovereign interest said to lie down there.

USD/JPY AT 96.50 is marginally easier in very quiet trade. Talk of bids at 96.40/50 with stops gathering just below 40. Sell orders seen up at 97.00 and then 97.20 up through 97.50. Large sell orders seen up around 98.00.