This morning, we have the German IFO business and UK CBI Industrial Trends survey due.
It is a very quiet start to the week in terms of economic data, with focus shifting to tomorrows UK growth figures and Thursdays raft of US data.
The pound has fallen from its highs where it hit a 22-month high against the euro on June 14th but has since slowly faded away.
As it is a quiet week, we could see the pound drift lower towards the end of the week.
A return to the mid-month highs looks unlikely, as last week’s Bank of England policy update revealed that the bank is readying for an August rate cut.
Markets are now pricing in a 65 percent probability of this happening adding pressure to the pound. Obviously, as this percentage increases the pound could lose further value.
The euro has its own problems with the French election taking centre stage. Political events will remain an important driver of the euro ahead of the French general election on 30th June and 7th July.
As we edge close to the event itself, focus will certainly be on the polls ahead of the election as investors try to position for different potential outcomes.