Euro Consolidates Ahead of German ZEW Survey

The Euro ended the day unchanged against the US dollar as the market tries to figure out whether the European Central Bank will continue to press forward with raising interest rates next month. The guessing game will be helped by tomorrow?s German ZEW report, which tends to be one of the more market moving reports for the Euro.

Given the turmoil in the financial markets, we expect analyst sentiment to deteriorate significantly. With no meaningful US data on the calendar, the German ZEW could be a bigger than usual market mover. Meanwhile over in Switzerland, producer and import prices were weaker than expected but this has had a limited impact on the Franc.

[B]Written by Kathy Lien, Chief Currency Strategist[/B]