Meanwhile, the euro pulled back as the German ZEW survey of confidence on the economic outlook unexpectedly fell in July to a reading of 39.5 from 44.8, which indicates that investors are less optimistic that that the Euro-zone economies will recover this year and that the financial markets are truly stabilizing.
On Wednesday, UK labor market reports are projected to show a buildup in the number of people applying for unemployment benefits, as the June jobless claims change is expected to rise by 41,300, marking the 16th straight increase. Meanwhile, the jobless rate is anticipated to hit 5.0 percent, the highest since September 1997, up from 4.8 percent. Like US non-farm payrolls, the jobless claims change is volatile in nature and can spark price action for the British pound when it misses forecasts, making this an indicator worth watching tomorrow morning.
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