We expect the ECB to hike rates this week. These are good levels to re-establish long positions in the euro.

Mortgage rates this week are at seven-month lows and teetering on the 45-year low levels of last summer,

Adjustable-rate mortgages (ARMs) were more strongly affected by the latest Federal Reserve rate hike this week. However, mortgage rates continue to be extremely affordable and the outlook for the housing sector appears bright.

The ECB is likely to hike rates again in 2006, but, unless sterling plunges or equities soar, the MPC probably will cut again.

This is going to cement the case to hike interest rates. The numbers do nothing to alter the stance now developing in the market that the next move in interest rates will be up. The consumption side of the economy needs to be slowed.

We expect 130,000 spectators during the week, so we need lots of marshals.