Forex News: Euro hit by fall in German consumer confidence
The euro fell against the dollar as German consumer confidence hit a new low. Luckily for the Euro a quiet trading section meant that the losses were limited.
The GFK market research group stated that the German consumer climate index is forecast to lower to 2.1 points in August; down from 3.6 points in July and its lowest level since June 2003. The figure is far less than the Thomson News poll of economists, which forecast the consumer climate index at 3.5 points.
The euro’s losses were limited by quiet trading as investors wait for a string of US data later this week, including US GDP data, ISM index and non-farm payroll figures.
Analysts predict that the dollar will continue to gain against the euro as European economic data takes a turn for the worse, where as frail US economic data is no longer a surprise.