EUR/USD has lost ground on Tuesday, as the pair trades in the mid-1.33 range. On the release front, the German and Euro confidence indicators slid last month and were well below expectations. German ZEW Economic Sentiment slipped to 8.6 points, while the Eurozone ZEW Economic Sentiment dropped to 23.7 points. In the US, today's key event is JOLTS Job Openings, an important employment indicator.
German ZEW Economic Sentiment, a key release, took a tumble in July, falling to just 8.6 points, down from 27.1 points a month earlier, and its lowest level since November 2012. The estimate stood at 18.2 points. This is the latest figure in a string of weak German releases. Last week, the trade surplus narrowed and manufacturing missed expectations. With economic indicators pointing downward and confidence in the German economy ebbing, we could see a decline in German GDP in the second quarter, which would likely have a chilling effect on the shaky euro. Eurozone ZEW Economic Sentiment followed suit, slipping to 23.7 points, compared to 48.1 points in the previous release. The markets had expected a reading of 41.3 points.
In the US, employment indicators are under the market microscope, as the strength of the labor market is one of the most important factors influencing the Federal Reserve regarding the timing of an interest rate hike. 2015, but stronger economic data, especially on the employment front, could hasten a rate move. We'll get a look at JOLTS Jobs Openings later on Tuesday. The indicator has been on an upswing and exceeded the estimate in the past two releases. Another rise is expected in the July release, with the estimate standing at 4.74 million.
EUR/USD 1.3342 H: 1.3383 L: 1.3343
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