Sterling awaits BOE inflation report

Today's Highlights

• Quiet Monday gives way to a busy Tuesday for EU inflation data

• Sterling awaits BOE inflation report

FX Market Overview

I am sure I am not alone in feeling a part of my childhood has disappeared with the sad death of Robin Williams. I doubt the world will ever see a faster, more intelligent or funnier comedian. Robin Williams, on stage was like a tornado emitting belly laughs. RIP Robin and Nanoo Nanoo.

Monday lacked..........now what is that word..........oh I know.....Monday lacked everything. That's the word. There were too few reasons to trade on Monday so the 97% of the forex market involved in speculation was largely absent and that left rates free to wander lonely as a cloud.

I suspect the swathe of inflation data from across the Eurozone this morning will enliven things a little but the increased tensions in the middle east and in Ukraine are ensuring traders an remain nervous. And we have seen some of that nervousness translate into an old school flight to quality with the strengthening of the US Dollar.

Yesterday did produce some Sterling-positive data in the report from the Council of Mortgage Lenders. They reflected another rise in mortgages in spite of the more stringent 'affordability' measures introduced over the last few months. Sterling strengthened marginally but remains twitchy ahead of tomorrow's Bank of England inflation report.

Overnight news included a report showing Australian house prices rose 10.1% in the 3 months to July compared to the same period in 2013. That's positive for the Aussie economy and reduces the chance of an interest rate cut as some analysts have been suspecting. The Australian Dollar strengthened a tad on the news.

Aside from all this, one of the saddest items any man could receive as a gift as gone on sale in Japan. The Kahei Oyasumi Bra; which translates as Floral Goodnight Bra, sounds like a very nice item until you realise it is designed for men; men with moobs or, to use the correct tile, Man Boobs. May you never be a recipient

Robin Williams Quotes

• Why do they call it rush hour when nothing moves?

• If it's the Psychic Network why do they need a phone number?

• If women ran the world we wouldn't have wars, just intense negotiations every 28 days.

• I believe Ronald Reagan can make this country what it once was... a large Arctic region covered with ice.

• You'll notice that Nancy Reagan never drinks water when Ronnie speaks.

• Politics: “Poli” a Latin word meaning “many”; and "tics" meaning “bloodsucking creatures”.