The Euro continued to sell-off against the US dollar as incoming data tests the rigidness of the European Central Bank. Since the last ECB meeting, monetary policy officials have been nothing but hawkish despite the fact that the region’s economy is weakening by the day. The German business confidence index has plummeted below the 100 mark as reported by the IFO index to the weakest level in 3 years. The same sort of deterioration was seen in the French business confidence index. Service and manufacturing PMI indices for the region as a whole remain in contractionary levels. Even the Eurozone current account surplus turned into a deficit in the month of May, reflecting the difficult conditions across the region. With oil prices holding at $125 a barrel, the ECB may be forced to reduce their degree of hawkishness, which would weigh further on the Euro. There is no major data due from the Eurozone data tomorrow which leaves the price action of the Euro dependent upon US data and market sentiment.