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On Friday we had further positive feedback from the US economy as existing home sales came in much better than forecast hitting 2 year highs; this data and a healthy economic assessment from Ben Bernanke boosted the good cheer in the markets. We are approaching the one year mark from the collapse in the financial systems and at the moment things are looking pretty steady and stable. However I feel economic data will be closely scrutinized in the next quarter to look for sustainability in the markets and not simply a knee jerk response to extra stimulus. An article in the FT by Nouriel Roubini points to a threat of a double-dip recession if recovery turns anaemic.

In the UK, the Institute of Chartered Accountants in England and Wales reported that business confidence turned positive for the first time in 2 years rising from -28.2 to +4.8. From the UK this week we see little data until Thursday with Gfk consumer confidence and then Q2 GDP. For the US we see the US S&P Home Price index, US Consumer Confidence, Durable goods and New Home Sales- the market will be looking for more signs of growth and sustainability to back up the positive testimony from Ben Bernanke.

Chin up Australia- yes you have lost the Ashes and the rugby against rivals New Zealand over the weekend- however do not despair as your currency is strong- hitting new 12 year highs against sterling at 1.9608. Probably not the best news for our Australian friends here in the UK though…

Discuss on this on the Currency Exchange Forum