As Cyprus joined the ever increasing number of European countries to request a bail-out yesterday, the euro suffered dropping half a cent against sterling.
Spanish 10 year government bonds are trading well above a realistic affordable rate with yield hitting above 6.8% Italian Bonds have followed the Spanish with yields edging above 7%. The question has to be asked how long this can go on. German Chancellor Angela Merkel is still refusing to go down the route of issuing Eurobonds saying they went against the German constitution.
The markets await the results from the Eurozone summit causing the currencies to remain within a tight trading range with the Euro sitting around 1.25 on the market and the US Dollar above 1.56.
UK retail sales benefited from the Queens Jubilee showing sales in June returned the strongest reading since December 2010.
USA consumer confidence dropped from 64.4 to 62.0 in June much more than the market expected. This is the fourth month on the trot that confidence has dropped, further compounding the slow growth in America.