Risk aversion has kept the Dollar well supported this morning after Friday’s strong rally. The release of weaker U.S. CPI, TICS flows and consumer sentiment data pushed the dollar higher on Friday as markets scaled back the multi month highs achieved by the Pound and the Euro earlier. This morning European markets have opened lower, dragged down by banking stocks, as analysts begin to anticipate the official release of the E.U. banking stress tests this Friday and although many banks are expected to perform well caution prevails.

Rightmove house price y/y for July, released overnight, came out lower at 3.7% from 5.0% in the previous month. The lower housing numbers have put the Pound on the back foot in early trade but profit-taking has kept losses capped.

There is no local or U.S. data scheduled for release today and in Europe current account for May is expected this morning.