The result of Europe’s bank stress tests are expected to restore confidence in the financial system this Friday. However, it is not clear whether the outcome will achieve this goal as many details regarding the stress measures lingers. The tests will include 91 banks, with two thirds in the public sector, while the outstanding one third will include banks across the private sector.
Furthermore, the number of banks will be comprised of a minimum of 50 percent of the lenders in each country and 65 percent of the sector in …

The British Pound extended the decline from the previous day and slipped to a low of 1.5174 during the European trade as the economic docket reinforced a weakened outlook for the U.K., and the exchange rate may continue to trend lower going into the North American session as investors hold a cautious outlook for the region.
Key fundamental releases from the Uk overnight includes the report by the Bank of England which showed mortgage approvals by the major banks in Britain increased 48K in June after expanding 51K in the previous …

Sterling ended last week on a weaker note with profit taking after recent strong gains against the dollar but also dropping back against the euro, which at last managed to maintain a breach of the stg84p level. News overnight of a 0.6% in Rightmove house prices has had little impact. While there is nothing else on the calendar today, there are plenty of domestic factors later in the week to provide sterling direction, including Wednesday’s minutes of the July MPC meeting and the first reading of Q2 GDP growth.
Looking at …

The Euro continues its remarkable rebound against the dollar following a long-term low of $1.1876 in early June. Since that point, the Euro has bounced nearly 11 pips in about six weeks to a current rate of $1.2935.

Dollar weakness has become the main story with yesterday’s batch of US economic data again largely disappointing, doing nothing to alleviate concerns about the pace of economic recovery. A third straight month of falling producer prices and soft manufacturing data came on top of Wednesday night’s FOMC minutes which showed that the Fed’s policy committee stood ready to do more to stimulate the economy if the pace of recovery slows further.
The euro touched a fresh two-month high against the dollar on Friday as weak U.S. data weighed on the U.S. …

World stocks slipped from a three-week high on Thursday after the Federal Reserve suggested additional measures may be needed to combat a weakening economy. This in turn has weighed down on price movement with the US Dollar.
Minutes from the Fed’s June meeting showed officials were concerned with the pace of the economic recovery and felt they should be ready to consider additional steps if an already softening outlook took a noticeable turn for the worse.
Concerns about the US economic outlook are weighing on the dollar which trades near a two …