Euro Stuck in a Range; Swiss Franc in Play

The Euro has been stuck in a 30 pip range throughout the US session trading session. We are finally seeing the impact of the strong Euro on economic activity. During the month of April, the Euro rose from 1.3350 to 1.3682 with virtually no retracements. Unsurprisingly, the current account surplus for that month turned into a deficit.

French business confidence is the only piece of noteworthy data on the Eurozone calendar tomorrow and even that is normally not market moving. The bigger story is in Switzerland. The UBS consumption index dropped from 2.384 to 2.089 in the month of May, which was its first drop in six months. Despite the drop, the index still remains high which do not write off the possibility of a stronger KoF leading indicator report tomorrow. Economic activity overall has been robust and should continue to be thanks to the weakness of the Swiss Franc.