The euro struggled this morning, while the pound also dipped against the dollar.

Uncertainty over the inconclusive German election resurfaced despite the final result of a seat in Dresden, with an even split in the vote and intransigent positions among the two main rivals proving difficult to negotiate.

The dollar stood at 1.1931 to the euro, while the single currency was at 1.4698 to the pound.

In the UK a number of major retailers are set to release results this week that are likely to give further indications of the retail market and consumer spending.

Ted Baker and Austin Reed are both set to publish figures, while the performance of food giant Sainsbury's in their second quarter results on Friday may also provide clues on the UK economy.

Today sees banking outfit Northern Rock publish third quarter figures which may also shed some light on consumer savings and borrowing.