EUR/USD continues to show very little activity on Tuesday, as the pair trades in the mid-1.34 range in the European session. On the release front, it's another quiet day, with just one Eurozone release, as German Import Prices posted a weak gain of 0.2%. In the US, today's highlight is CB Consumer Confidence. The markets are expecting another strong showing from the June release.
The euro continues to trade at its lowest levels since November. Many investors remain on the sidelines, waiting for three key events on Wednesday which could move the markets. The Federal Reserve will release a policy statement and the markets will get a look at US Advance GDP and the ADP Nonfarm Payrolls. These events could shake up EUR/USD.
Soft German data continues to concern the markets. German Import Prices posted a gain of 0.2%, which was the best showing in 2014. This was shy of the estimate of 0.3%. On Friday, German Ifo Business Climate, a key indicator, dipped to 108.0 points, its third straight decline. On the inflation front, Germany has not been immune to Eurozone inflation woes, and we'll get a look at German Preliminary CPI on Wednesday, with the markets anticipating a small gain.
EUR/USD 1.3434 H: 1.3440 L: 1.3427
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