Single Currency Suddenly Weakened
The Euro/Dollar pair fell 0.28% to trade at 1.1712. Today, the US will feature PPI and Core PPI. Tomorrow, Germany will present Final Consumer Price Index and ECB will issue a protocol of its June meeting. From the US, we’ll get Consumer Price Index, Final Consumer Price Index and jobless claims.
Yesterday, German ZEW Economic Sentiment declined to -24.7 while the prognosis suggested -17.9 pts. Eurozone ZEW Economic Sentiment reduced to -18.7 pts. The forecast stood at -13.2 pts. Both reports marked their 6-year minimums and the weakening was attributed to the impact of US trade policy.
The US decided to push on 10% tariffs on another 200 billion of Chinese goods. The tariffs will be effective in September and the list includes clothing, television components and refrigerators as well as other technology products. Investors are concerned and the action was already strongly condemned among the whole world. The single currency responded negatively.