Forex News Germany – Gfk index gives a breeze of confidence

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Forex Economic News: China’s Manufacturing PMI experiences slower expansionThe Consumer Confidence Index of Germany for July released earlier today, signalled a rise for the first time in the last four months. The reading for July is 5.7, while the expectation was for 5.3; June’s reading was at 5.6. The fact that the Bundesbank has revised this month its growth forecast upwards to 3.1%, since the German economy grew by 1.5% in the first quarter of 2011 enforced the Germans in the Gfk survey to express their confidence for higher income in the following months. The Gfk Consumer Confidence survey is an index of great importance for Europe’s largest economy as it measures the level of confidence among consumers in the economic activity. High reading for this indicator usually stimulates growth and vice versa. The news bolstered the single currency which gained some 17 pips to climb to 1.4285 against the greenback. The EURUSD pair has climbed to a three days high of 1.4328 at 08:00 GMT. However, the pair did not manage to hold the majority of its gains; the Euro is currently trading against the US Dollar at 1.4269, finding good support at the 1.4260 area. Investors are waiting for the release of the German CPI numbers today to extract safer conclusions.