The single currency could have some of its loses after yesterday decline of June IFO business climate index to 101.3 from 103.5 in May and EU PMI flash manufacturing index which dived in the contracting territory below 50 in June to 49.1 and the service index of the same period which has fallen to 49.5 too. The greenback was depressed across the broad as the very weak unexpected consuming confidence data. The US consumer confidence of June has slumped to 50.4 in June and the market was waiting a decline to 56.7 from 58.1 in Ma. The data refer to the economic growth slow down and bringing the recession forces into the spot hurting the greenback and lowering the expectation of an interest rate hike later this year. The market is waiting for the Fed's US assessment after its meeting tomorrow to know the current Fed's evaluation of the growth downside risk amid the current weak confidence in the US economy and the inflation upside risks amid the current high energy and commodities prices.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
