The German GDP was released yesterday and it met its expectation head on with a gain of 2.2%. The EUR lost further ground to the USD Tuesday, but it accomplished this at a slower pace than the previous two sessions. Questions were raised about the debt ratings of Ireland, but this should certainly have not come as a surprise to investors. However, what is important to note is that the divergence ‘barometer’ continues to falter – meaning that the E.U. is seeing a growing disparity within its nations and questions about a ‘two tiered economic’ sphere. The German Ifo Business Climate reading is on schedule today and its estimate is calling for a reading of 105.8. The combination of the German data and a nervous international conglomerate of investors will continue to put the EUR to the test today under a risk sentiment cloud.
Written by bforex.com