THE TAKEAWAY: Reading beats expectation, though lower from previous > Markets largely unsure of sentiment > GBP stable

The sterling remained quiet after the nationwide consumer confidence survey showed an expected lower reading, but beating previous expectations. The pound and other yield currencies strengthened against the US dollar in early morning trading on reports Germany and France have reached a joint agreement on Greece.

The June reading for British Nationwide consumer Confidence came in at 51, beating analyst expectations of 49 but falling from the previous record of 55.

British_Pound_Stable_Despite_Lower_Consumer_Confidence.doc_body_Picture_5.png, British Pound Stable Despite Lower Consumer Confidence

UK Nationwide Consumer Confidence. Chart generated with Bloomberg LP Professional Terminal.

The British pound was relatively quiet after the report as the mixed data pulled sentiment both ways. However in early trading, the pound gained ground against the US dollar on reports that German Chancellor Merkel, French President Sarkozy have met earlier today with ECB president Trichet on a combined proposal for Greece. The plan is expected to be presented tomorrow at the EU Finance Ministers Meeting, scheduled for 1100GMT.

British_Pound_Stable_Despite_Lower_Consumer_Confidence.doc_body_Picture_6.png, British Pound Stable Despite Lower Consumer Confidence

GBPUSD 5 minute chart; vertical line indicates time of release. Chart generated with FXCM Strategy Trader.