Forex Europe News – Negative German Zew Survey

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The Zew Economic indicator for the Euro zone’s strongest economy came out today at -9.0, the forecasted value was -1.5, the outcome indicated a drop of 12.1 points compare to the May value of 3.1. The current reading is well below the indicator’s average value of 26.3 points. The decline spurred pessimism in the markets and especially across the single currency community. The indicator dictates that there is great possibility for the German economy to slowdown in the following months. The financing problems in the heavily indebted peripheral economies and a series of negative economic data for the US economy have negatively affected Germany which relies much on its exports. Upon the announcement of the news the single currency slipped against the US Dollar losing some 37 pips to touch a session low of 1.4314. At the 1.4300 area Euro looks well supported versus the Dollar, however, the markets are waiting whether the Greek PM will receive the confidence vote later today from the Greek Parliament in one of the most crucial session in the country’s modern history in order to forecast future moves. The EURUSD pair is now trading at 1.4320 on nervous trading.