FX Market Overview

9 down, just 2 to go. 9 Brits have exited Wimbledon in the first round leaving only Andy Murray and Elena Baltacha to fly the Union Jack - good luck.
The US Federal Reserve deliver their interest rate announcement tonight amid speculation they won’t signal that interest rates are going to rise. Some traders have it in their heads that interest rates are on the turn and the US Federal Reserve is planning their exit strategy from their interest rate cutting cycle in the very near future. Personally I don’t see this happening before 2010, since a rate hike too early on has the potential to extinguish any economic recovery and throw the economy back into recession - I would take a little inflation over a recession any day of the week.
So expect the Federal Reserve to leave rates on hold at 0 to 0.25%, without mentioning further stimulus through quantitative easing (otherwise known as turning on the printing presses). Any deviation from this result will no doubt result in a decent US dollar move.
The US dollar has fallen 3.5 cents against the pound since yesterday as traders position themselves for the Fed announcement. "Buy the rumour, sell the fact" could well result in the pound giving these 3.5 cents straight back.
Japanese exports fell 40.9% in May as demand for cars, steel and electronics fell off a cliff. This marks the 8th consecutive monthly decline in exports which is not in itself surprising given the state of the global economy at present.
The European Commission has given the UK Treasury a warning over the dire state of its finances as the rising debt put Britain into the same class as the Irish Republic and Latvia. Brussels forecast the Treasury will have to borrow a whopping 12.75% of GDP in 2010.
Yesterday US May existing home sales improved marginally as was forecast. This figure along with the inventory of homes for sale number which fell 3.5% provides another encouraging sign that the US housing market is bottoming out. Watch for sales of new homes in May which comes out at 15:00pm this afternoon for further evidence.

Cat lover Postman Pat would be shocked to hear the Royal Mail has warned a London family their mail could be stopped after a postman was scratched by their pet kitten. Ken Ridge, 65, and son Bradley, 30, received the warning after the postman was targeted by kitten Illy. Both planned to ignore the warning.