Euro Trades Sideways After Discouraging June ZEW Surveys
Confidence in Germany, Europe’s largest economy, continues to deteriorate as the Euro-zone’s sovereign debt crisis continues to hamper investor sentiment. German investor confidence, as measured by The ZEW Center for European Economic Research, dropped to its lowest level in six-months, as the Economic Sentiment portion of the release dropped to -19.6 from -16.9, against an expectation of -20.0, according to a Bloomberg News survey. Similarly, the Current Situation portion showed deterioration to 21.0 from 33.2, against an expectation of 30.0.
EURUSD 1-minute Chart: July 17, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the release, the Euro traded lower against the board before perking back up, but has since come back down towards its prerelease levels, including against the US Dollar. After dipping to 1.2285, the EURUSD rallied to 1.2316, before selling off again to its current price of 1.2296. The ZEW figures would have impacted the EURUSD more negatively had it not been for a promising Spanish bond auction, which saw 12-month bills fetch a yield of 3.918% versus 5.074% on June 19.
--- Written by Christopher Vecchio, Currency Analyst
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