Markets Seem to be Flat-lining

In August, the UK National home prices leaped to 1.6% against the forecasted 0.5%

However, the GBP/USD continued its fall maybe because of the lingering worry that small UK businesses are unable to obtain the credit needed to support new opportunities.

Meanwhile, Germany's Consumer Confidence climbed to 3.7; the Eurozone’s M3 Annual Money Growth Rate dropped to 3.0% whilst the Bloomberg Retail PMI recorded 47.1 against 47.3 expectations.

As a result, the EUR/USD consolidated its overnight drop and staged to small recovery from 1.4215 to 1.4260.

The major US releases showed that US GDP 2Q posted no change against a forecasted -1.3% and that the US Initial Jobless Claims had dropped to 570k.

As a result of these figures the EUR/USD is just drifting within a tight range although a breakout could be imminent should a suitable catalyst appear on the scene.

The USD did advance against the EURO and the other majors yesterday but it is difficult to understand why this should be considering the strong Fundamental Data releases made this week that normally herald an increase in risk appetite.

As such, the question whether this is just a USD relief rally or a much deeper correction remains unanswered.

Perhaps, next week's US Non Farm Payroll report will supply the impetus to jolt the market out of its present flat-lining mode.