Disappointing CBI distributive trade figures released saw sterling weaken in the session. As well as this, a lower than forecast reading of consumer confidence from the US saw the US dollar rally as safe have inflows picked up as sentiment turned sour. It was a quiet day once again in the eurozone. French producer prices and Italian business confidence were not expected to reveal any major surprises, and any movements within the single currency will once again be bred from equity market movements.

Sterling

Although sterling retracted from its highs, it did not succumb to massive selling pressure despite disappointing CBI distributive trade figures. Figures came in below forecasts, however, the end reading was still better than the previous month's figure.

US Dollar

Poor consumer confidence figures saw the US dollar rally as safe haven inflows picked up. Confidence fell to 46.6 in July from 49.3 in June, with markets widely attributing this decline to a bleaker jobs outlook within the US. Dollar gains were initially limited however as the S&P Case Schiller house price survey came in above forecast showing a decline of 17.06 per cent year on year versus an expected drop of 17.9 per cent.

Euro

A fairly lacklustre day of economic figures saw the euro largely dictated to by equity market movements and the activities of other currencies. The single currency fell off seven-and-a-half week highs against the US dollar as safe have inflows picked up after poor US data soured sentiment. The euro also fell by over a per cent against the Japanese yen.

Japanese Yen

The Japanese yen rose with safe have inflows as global market sentiment turned sour, with the euro and sterling, in particular, declining against the yen.