The euro was slightly up against other major currencies this morning as a German economic report showed that consumer confidence was increasing slightly.

This morning the eurozone currency was trading at 1.4592 to the pound 0.7850 to the US dollar and one euro bought 147.677 Japanese yen.

The report, published by Nuremberg research firm GfK, said consumer confidence for August would most likely come in at 8.6 points, RTT News reports. The figure for July was initially 7.8 but this was revised upwards to 8.0.

Meanwhile, the dollar lost some value to the yen as concerns grow over the state of the housing market in the US and the knock-on effect this will have on interest rates. A cooling housing market will probably see the Federal Reserve delay any interest rate rises.

"Housing and consumers are about 80 per cent of the US economy. There's plenty of evidence that the housing bubble is popping," Harvinder Kalirai, head of research at State Street, told Bloomberg.

According to the Mortgage Bankers' Association, a US trade body, mortgage applications fell for the second week in a row.