Dollar rises on interest rate speculation
The dollar rose against the euro as speculation abounds that a US government report will show faster than expected economic growth, pushing the Federal Reserve to raise interest rates.
This morning the dollar stood at 1.8676 to the pound and was at 1.2718 against the euro.
A US Commerce Department report is due out on Thursday that is expected to show the world's largest economy expanded at its fastest pace in more than two years during the first quarter of 2006.
The news has helped the dollar regain some of the strength lost at the beginning of May, while UK investors will look to a range of company info being released this week for further pointers.
Cleaning and maintenance company Mitie Group posted a 5.4 per cent rise in its year pretax profit today, while Homeserve, the provider of emergency repair services and insurance, is also expected to issue positive final results.
Tomorrow sees Cambridge Antibody Technology's interims released, together with Chrysalis and Punch Taverns.
Marks & Spencer will issue final results on Tuesday which could hold clues to the performance of the high street, while Wednesday sees GUS and Mothercare issue their own finals.
On Thursday the London Stock Exchange publishes final results that will be keenly studied as the markets reflect on the news that NYSE Group today made a cash and stock offer of about $10.2 billion for Euronext NV, Europe's second-largest stock exchange.