The dollar was stable against the euro on Monday

Good Morning,

- Slow start to slow Week…

- The dollar was stable against the euro on Monday, despite weak German industrial production (-1.8% from 0.3%). Eur/usd fell a few pips on the release of the news but quickly found buyers at 1.3580 taking it at 1.3600 and traded in at this range the whole European session.

- Equities VIX up 11.4% (11.5) from last week; FX vol up 5.6% (5.04); Oil vol up 4.2% (16.2); and EM vol up 0.9% (5.9)

- Sterling retreated against the dollar and euro (down 0.20% against both) on profit taking as the currency has enjoyed an impressive rally. The next important event will be the release of the Fed minutes on Wednesday as traders will be looking for signs for an interest rate rise.

- Central Bank speakers today: ECB's Noyer (6:30 GMT); ECB's Linde (7:00 GMT); Fed's Lacker (17:00 GMT); RBNZ's Wheeler (19:00 GMT).

- As US traders returned to their posts from a long holiday weekend, the dollar was little changed from where they left it on July 3, following the ECB meeting and the US employment data. The Swedish krona and Norwegian krone are weaker, following the Riksbank unexpectedly large 50 bp cut and disappointing data, including Monday’s news that Norway's manufacturing output fell 0.3% in May compared with a consensus forecast for a 0.2% increase. Overall….Norway's central bank does not meet until September 18 and while there is much data before then, the market has begun pricing in the chances of a rate cut (deposit rate stands at 1.5%)….

- ECB's Coeure: Germany is ahead of reforms, France will catch up.. Eurozone growth is likely to accelerate. Growth is needed for inlation at 2%..European debt levels still too high.

- For US traders coming last night saw #Goldman Sachs shifts forecast for #Fed increase to Q3 2015 from Q1 2016

- Canadian Ivey Purchasing Managers Index s.a. 46.9 vs 52 expected; 48.2 prior.

- China, U.S. to discuss yuan, monetary policy this week. China and the United States will discuss the yuan's value as well as the impact of U.S. monetary policy at a meeting this week, Chinese Vice Finance Minister Zhu Guangyao said on Monday. Top Chinese and U.S. officials, including U.S. Treasury Secretary Jack Lew, will hold their annual talks in Beijing on July 9-10 at a meeting known as the Strategic and Economic Dialogue.

-German FM Schaeuble: We all agree we need more growth. We can achieve lasting growth only by implementing the necessary structural reforms.

- Sarkozy, plagued by accusations, sees left-wing plot to destroy him.. Many of his supporters and some legal experts say he does, and express suspicions about the unusually aggressive legal tactics used in the case as well as its timing, which could torpedo his possible run for the presidency in 2017.

- Major news for today: GBP Manufacturing and Industrial Production, CPI China, AUD WestPac Consumer Sentiment, EUR German Trade Balance, FOMC Kochelakota speaks.

Have a nice Day!