[B]Range traders should be having a ball with the Euro as the currency pair oscillates within a 30 pip range throughout the US session. Range trading has been fueled by mixed economic data that gives little insight into when the European Central Bank may raise interest rates next. [/B]
Both the PMI manufacturing and service reports accelerated in the month of June, but French and Italian consumer spending both took a nosedive last month. All three of the main Eurozone nations have now reported a deceleration in consumer spending which is not good for the region?s overall economic outlook. The PMI reports are conflicting and confusing which makes it difficult to tell which direction the German IFO report will sway tomorrow. The market is currently looking for business sentiment to remain unchanged at 108.6. With the dip in the German ZEW index earlier this month, the odds are slightly skewed to the downside. Meanwhile over in the Switzerland, the trade surplus increased last month thanks to the weakness of the Swiss franc. The currency?s refusal to rise will continue to provide stimulus for the overall economy.