European open: Confidence numbers may offset some of yesterday's Eurozone weakness

FXstreet.com (London) - UK house prices are due this morning, with further strengthening expected. Eurozone business, economic and consumer confidence figures are also due which may help to offset weakness in the common currency triggered by signs from the ECB yesterday that the any growth in the Eurozone is more fragile than thought, with lending to private companies at a record low.

German CPI numbers are expected to print flat on July, with a 1.6 percent consensus expectation year-on-year.

EUR/USD stands at USD1.3495.

Japanese August CPI inflation figures showed a larger than expected rise in inflation, up 0.9 percent year-on-year versus the 0.8 percent consensus estimate and up from 0.7 percent in July. Core inflation came in at -0.1 percent year-on-year , unchanged from July. The figures show that Japan is creeping towards the BoJ target of 2 percent inflation, but seems to be doing so by trying to import inflation through the yen rather than through any strong and sustainable domestic market dynamics.

USD/JPY is trading at JPY98.5950, down 0.37 percent.