Decline in Euro-Zone Retail Sales Overshadowed by Improving Service Sector

[B]Fundamental Headlines[/B]
• Slow Flow of Stimulus to Infrastructure – Wall Street Journal
• Foreclosure Plan Is Off to Bumpy Start – Wall Street Journal
• SEC set to target flash trading – Financial Times
• Household Incomes in U.S. Weaken, Threatening Consumer Spending Recovery – Bloomberg
• Bank of England to End Bond Purchases as Economy Revives, Gilt Dealers Say – Bloomberg[/I]

[B]EURUSD[/B] – The Euro-Zone PMI Services was better than expected for the month of July, with the composite index reported at 47.0 compared to the consensus of 46.8. The composite index was reported at 44.6 in June, as the manufacturing and services industries contracted at the slowest pace in a year. Meanwhile, Euro-Zone retail sales were significantly worse than expected with the monthly figure at -0.2% compared to consensus of 0.3%, and the yearly figure at -2.4% compared to -2.2%. This was already expected though after German retail sales reported on Monday missed expectations by 2.3%. Discuss the topic and your trade ideas in the EUR/USD Forum.

[B]GBPUSD[/B] – British Industrial Production expanded 0.5% in the month of June, beating expectations of 0.0%. The yearly figure fell 11.1% compared to the consensus of -11.4%. The mining and quarrying subsector and the oil and gas subsector both increased their production by 1.1%. The PMI Services was also released earlier, which reported at 53.2 versus the consensus of 51.8. This is encouraging data, indicating that the United Kingdom may recover from this recession sooner than expected and return to growth in the third quarter. Discuss the topic and your trade ideas in the GBP/USD Forum.