With the repercussions of the Federal Reserve’s recent policy meeting continuing to impact the market, off-estimate German business confidence data had little effect on the Euro as the European session progressed.
The Euro Exchange Rate was in the region of 1.3114 against the US Dollar as of 10:55 GMT
A report showed that the Ifo’s business climate index for Germany advanced from 105.7 to 105.9 this month.
Although this result was in line with expectations other figures were not.
The Ifo’s measure of current business conditions fell by more than forecast, slipping from May’s 110 to 109.4 while a gauge of business expectations exceeded estimates by climbing from 101.6 to 102.5 in June.
Economists were expecting the index of business expectations to advance to 102.
The Euro edged down to 1.3103 against the US Dollar after the data
In response to the report chief economist David Milleker asserted: ‘Germany’s economy clearly is recovering from the slump at the end of 2012. But the pace of expansion will partly depend on the rest of the world. There are some worrisome developments in emerging markets like China.’
Last week’s less-than-impressive Chinese manufacturing data had a negative impact on export-driven currencies like the Euro. If this week’s Chinese industrial profits, leading index and business sentiment indicator exacerbate concerns about the world’s second largest economy the Euro could soften further.
The common currency is also likely to be affected this week by several pieces of influential economic news for the Eurozone.
Euro (EUR) Forecast
Wednesday – German Consumer Confidence (Expected to hold at 6.5)
French 1Q GDP year-on-year (Expected to decline by 0.4 per cent)
Thursday – German Unemployment Change (Expectation that the economy added 8,000 jobs)
German Unemployment Rate (Expected to hold at 6.9 per cent)
Eurozone Business Climate Indicator (Expected to come in at -0.65)
Eurozone Industrial Confidence (Expected to advance from -13 to -12.3)
Eurozone Consumer Confidence (Expected to hold at -18.8)
Eurozone Services Confidence (Expected to advance from -9.3 to -8.5)
Friday – German Retail Sales (Expected to gain by 0.2 per cent year-on-year)
German CPI (Expected to come in at 1.7 per cent year-on-year)
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3114 –
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8536 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4286 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7010 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7628 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1714 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7000 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5880 <
(Correct as of 10:55 GMT)
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