The pound gained against the euro during the Asian trade after data showed UK consumer confidence jumped in May. An index of sentiment reported increase to 55 points in May from an upwardly revised figure of 44 in the previous month. The good weather and succession of public holidays seem to have boosted consumer confidence, however it is still too early to conclude that the downward trend is being reversed. Looking ahead to today, labour market statistics headline the economic calendar, with the expectations for the claimant count unemployment to have risen by 6.5K in May while ILO unemployment rate remained unchanged at 7.7%. Separately, the Chancellor of the Exchequer George Osborne and the Governor of the Bank of England Sir Marvyn King are due to speak at the Manson House today.
The euro dropped against most of its major rivals as European Union officials struggle to find solution for a second Greek rescue plan. German Chancellor Angela Merkel and French President Nicolas Sarcozy will meet on June 17 in Berlin, to come to resolution over the rescue package for Greece, which was downgraded to the world’s lowest credit rating by Standard & Poor’s. Looking ahead to today, French inflation figures and Eurozone industrial production headline the economic calendar.
The dollar gained across the board during the overnight trade as safe haven assets remained in high demand with the broad sell-off of riskier currencies. Looking ahead to today consumer price index headline the economic calendar, with the expectations for the CPI inflation to have increased only by 0.1% in May, after a 0.4% gain in April. Separately, market participants are going to pay close attention to industrial production figures for May with the expectations for numbers increase by 0.2%.
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