The Pound continues to struggle as economic data points to a lag in economic recovery.  Nationwide house process fell m/m in July, mortgage approvals also dropped and consumer confidence has slipped for the month of July.   In contrast the Euro-zone data is indicating robust economic activity and has reduced fears of a further recession in the E.U. region.  German unemployment fell to 7.6% from 7.7% yesterday and this morning German retail sales figures rose to 3.1% from -2.4% the previous month.

There is no local data scheduled for release today but the key event for markets will be the release of US GDP Q2 preliminary results. Growth is expected to slip slightly which could have a negative impact on the dollar as the Fed Beige book recently confirmed economic activity in the U.S. was slowing.  Other data out today will be U.S.  unemployment, U.S. Chicago PMI and University of Michigan sentiment figures.