Movement:

In the Asian session, The euro hit a seven-week high against the yen on Monday as a rise in shares prompted dealers to unwind long yen positions, but scepticism about the credibility of the euro zone's bank stress tests limited its gains versus the dollar. In the Europe session, The euro edged up against the dollar on Monday but came off early highs as investors concluded that although European bank stress tests revealed no horrors they delivered no compelling reason to buy the single currency. In the US session, The euro rallied to $1.30 on Monday as relief over European bank stress tests and stronger economic data on both sides of the Atlantic gave investors less reason to be risk averse.

US:

Sales of new U.S. homes rebounded strongly in June from May's record low, pushing the number of houses on the market to the lowest level in nearly 42 years. But downward revisions to sales estimates for April and May in Monday's report left in place a picture of a weak housing market and perceptions that economic growth moderated somewhat in the second quarter.

Japan:

Japanese exports rose more than expected in June from a year earlier but the pace of increase slowed for the fourth straight month, a sign the economic recovery may lose steam on moderating overseas demand. While analysts expected export growth to slow from a sharp rebound in the first quarter, the yen's recent gains and signs of a slowdown in big markets such as the United States and China have heightened uncertainty on the outlook for Japan's export-reliant economy.

Euro zone:

The French housing ministry on Tuesday gave the following unadjusted figures on housing starts in the three months to the end of June 2010. The UK's bubble bashers should focus on property. The new "bipartite" regime, led by the Bank of England, won't find life much easier than the old tripartite system. But if regulators remember that British bubbles normally start in property, things could turn out OK. Look first at the structure. The new government has made lots of noise about how it is replacing the discredited tripartite system of the BoE, the Financial Services Authority (FSA) and the Treasury -- with a streamlined structure where the BoE is responsible for what's known as "macro-prudential" regulation.