Euro: Appreciating To 1.3500 And Beyond

[DailyFx]

There was only one piece of news for the Eurozone and it was confined to the German GfK consumer confidence survey. Although standing as the only pertinent survey for the European economy, the report had positive undertones and helped to establish at least a thin direction in the market heading into afternoon trading.

It seems that consumers are remaining increasingly confident compared to previously noted pessimism by regional businesses. The consumer confidence report for the month of July fared far better, rising above expectations and printing an 8.4 for the German economy. The recent figure is an improvement over the 7.4 seen in the month of June and spells further upside in the Euro currency as speculation is already pricing in a string of rate hikes by the ECB. Notably improvements were most seen in the index subcomponent measuring consumer demand, as the sector jumped to positive territory marking 9.1points. Next up for Euro bulls, French housing starts and Italian business confidence. However, given the blatant dollar overtones for the week, the bits of economic data will mean little in tomorrow?s session.