Starting with the U.K. as the Rightmove house prices for June were released last night showing a drop by 1.2% after the prior reported rise if 1.2%, while prices only gained 0.1% annually after rising 2.2% in the prior estimate, the U.K. house prices continues to weigh down on economic growth driving the U.K. economy into a similar situation like that in the United States.

Britons' confidence is dropping as they face one of the most difficult situations since nearly a decade, falling home prices accompanied with tightened access to credit are limiting their spending, while rising food and energy prices from the other end is cutting a bigger share off their pockets, the BOE also seems to be stuck as rising inflation stopped the bank from cutting interest rates to counter downside risks to growth!

Moreover Germany the Euro Zone biggest economy released today a set of data, starting with the PMI for manufacturing which dropped in June to 52.3 from 53.6 reported back in May and worse than the expected 53.2 estimate, yet the purchasing mangers index for the Services sector came in better than the expected 53.1 estimate at 53.3 yet it dropped from May's 53.8 estimate.

Rising inflationary pressures and prospects of an interest rate hike from the ECB both are helping in grind down consumer confidence in Germany, as the IFO confidence for business climate declined in June to 101.3 from 103.5, while the IFO for current assessment drop to 108.3 from 110.1, and finally the IFO for expectations dropped noticeably to 94.7 from 97.3 back in May.

Also the Euro Zone had its share of news today with the release of the PMI, the manufacturing PMI dropped to 49.1 in June from 50.5, as well as the services PMI which dropped to 49.5 from 50.6 back in May.

The Euro Zone continues to grow supported by sound fundamentals yet the prospects of more pronounced weakness continue to increase, while skyrocketing inflation might force the ECB into hiking interest rates in order to prevent upside risks to inflation from persisting over the long term!

The American session shouldn't hold any major movement since no major fundamentals are to be released today, while all investors are waiting for the 25th to see what does the Fed have to say over the outlook for the world's largest economy, expectations are showing the Fed will most probably keep their rates steady until further data comes out and declare the beginning of a total shift in stance to rather a strong Hawkish one!