Euro Open: EZ Consumer Confidence to Remain at 5-Year Low

Written by Ilya Spivak, Currency Analyst

The Euro moved higher overnight, testing above the 1.48 level. Sterling retraced some of the heavy losses seen in US hours, rising to re-test the 1.84 level. Australian Private Capital Expenditure surprised to the upside, printing at 5.7% in the second quarter versus 2.0% expected. Tonight's calendar is laden with Euro Zone economic data releases, though forex traders are unlikely to see them produce substantial deviations from established themes. Interestingly, recent weeks have seen the Euro under pressure even though monetary easing seems far from imminent. This could suggest that price action is attempting to guide the ECB, acting as if the bank will soon be compelled to cut rates sooner.