Weak German ZEW Hurts EUR

The euro slipped against the other major currencies on Tuesday’s European session, after data showed that German economic confidence weakened for the seventh consecutive month in July, signaling concerns over economic growth of Europe’s largest economy.

The survey results from the Mannheim-based Centre for European Economic Research/ZEW showed that Germany’s economic sentiment index fell 2.7 points to 27.1 in July. The score was expected to fall to 28.2.

The survey showed that assessment of current economic situation declined by 5.9 points to 61.8 in July.

Meanwhile, economic sentiment in euro area decreased 10.3 to 48.1 in July. Likewise, current conditions fell by 3.8 points to -31.5.

The Fed Chair Janet Yellen will testify before Senate Banking Committee today and the House Financial Services Committee on Wednesday. Her comments are closely watched for clues about the state of the economy and on timings of interest ratehikes.

via RTTNews

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza