What Happened To The EUR After The German ZEW?

Published date: 12/06/2018
 
 

The EUR has taken a dip in the aftermath of the German and EU ZEW surveys released this morning, all coming in on the weaker side.  Naturally, the fragmentation in Italy and the trade tensions in the US are causing nervousness - especially in Germany - and confidence in the outlook has been eroded as a result.  The impact on the EUR from here will be better gauged after the ECB meeting, as traders will still be looking to buy dips ahead of the meeting announcement on Thursday, which is now live on a discussion on when to signal an end to QE. 

EUR/USD resistance remains strong into the mid 1.1800's, but for now, the pair is struggling to maintain a foothold above the figure level. EUR/GBP is also slipping a little after continuous rejections of the low to mid 0.8800's, despite fresh uncertainty on Brexit.  EUR/CHF has now slipped back under 1.1600 again and it is hard to see a material recovery in the single currency in the current climate.

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