The FTSE, DAX and CAC have made a good start to the trading day, opening up around 0.75% to 1%. The main reason for this is a late surge of bullishness in US markets last night which, as it often does, leaves the European markets playing catch up.

Markets have fallen back a little though and the FTSE is sluggish compared to its European peers with volatility in Royal Dutch Shell shares not helping.

This news has been balanced by the latest figures from Nationwide showing that house prices rose by more than had been forecast during July.

The only other upper tier economic announcement due today is US unemployment claims which will be released at 12.30 BST.

Pound nears resistance

The Nationwide housing figures appear to have given investors confidence in the pound this morning. As a result Sterling is in play, rising 0.7% against the Dollar and the Yen.

GBP/ USD looks to be the pair in play as traders push it close to the 1.6500 level which has become an overhead resistance level over the last couple of months.

Since June, GBP/ USD has closed above the 1.6500 level four times, but managed to close above it again the next day just once.

Bear trades or Fixed Odds Double (Down) Trades could be a good way to play the pair as it approaches the resistance level once again.

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