The Euro continues to be stuck in a tight trading range that is typically more characteristic of a currency pair like EUR/GBP or EUR/CHF. Economic data has been light with French business confidence being the only piece of noteworthy economic data released from the Eurozone today. Unlike German business confidence, which deteriorated in the month of June, French business confidence was stronger than expected. Overall, the Eurozone economy is still performing well enough to warrant another interest rate hike from the European Central Bank. ECB members continue to remain hawkish.
Quaden reminded the markets today that the central bank is closely monitoring upside inflation risks. The FOMC meeting could drive some movement in the EUR/USD as well as tomorrow?s German unemployment figures. Stronger employment could pave the way for an upside surprise in German retail sales on Friday. Meanwhile over in Switzerland, KoF leading indicators fell short of expectations in the month of June. This led to broad based weakness in the Swiss Franc.