German ZEW survey hits single currency

The euro weakened by 0.01 cents (0.07%) against the US dollar yesterday to close the day at $1.3965.

• A worse-than-expected German ZEW Economic Sentiment survey figure released early yesterday weakened the single currency initially. This month’s reading of 39.5 was well down on the 42.7 registered in June, as well as analyst forecasts of 48.0.
  
• However, the euro’s falls were capped by some positive data out of the US mid-afternoon, prompting an increase in investor appetite for riskier currencies. This month’s US PPI figure and Retail Sales data were both well ahead of analyst predictions.
  
• Finally, much stronger-than-forecast results released by Goldman Sachs, who reported a 65% rise in second-quarter profits to £2.1 billion, also buoyed investor risk appetite as they speculated the worse of the recession could now be over.
  
• There are no important announcements out in the eurozone today, whilst in the US Core CPI data is out at 13.30 BST and FOMC Meeting Minutes are due at 19.00 BST.