- Rabobank
Despite the fact the most traded currency pair closed on Wednesday and Thursday unchanged, it was stuck at the lowest level in eight months on Friday, trading around 1.3449.
The Munich-based institute said the headline business confidence index, which is based on opinion of about 7,000 German executives, came in at 108.0 in the seventh month of 2014, missing market's forecasts of 109.4 and deteriorating from June's 109.7. At the same time, the measure of current conditions slipped as well, hitting 112.9 points after June's 114.8 and also falling short of analysts' expectations 114.5. Both readings came as a surprise for experts, as a variety of economic indicators pointed at a stronger growth in recent months, while consumers also showed atypical exuberance despite the fact Germany won the World Cup.
Data from Europe is having less and less impact on the single currency, with the most traded currency pair being mostly driven by events from the United States. This week on Wednesday Destatis will publish its inflation data for July, however, even in case of weaker-than-expected data, markets will react in a meagre way, as investors lost their faith in the ECB, with bets for any additional easing being around record-low.
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