A much busier day for fundamental news on the economic calendar both in Europe and the US and hopefully one which will introduce some much needed life into the euro to dollar pair which continues in its sideways meander.  This morning in Europe we have already seen the pivotal German ZEW figures released which have come in far worse than expected at 39.5 against a forecast of 48 and indeed these are significantly worst than last month’s figure at 44.8.   This suggests that the any recovery in Europe’s largest economy may take considerably longer to materialise than has been forecast recently.  At the same time the Industrial Production figures were also released along with the European equivalent of the German ZEW Sentiment Index both of which came in well below expectation, the first of these at 0.5% versus 1.5% and the second 39.5 against 44.2.  So all in all a gloomy picture for the Euro this morning.  However, despite all this less than rosy picture the Euro has, so far, held its own in the London trading session as we now await a further set of key data from the US, starting with Core Retail Sales, PPI, Retail Sales, and finally Core PPI.   In addition the currency market is also waiting for the start of the earnings season and with these factors combining we should see some volatility as the US markets open even though the retail figures may be relatively flat.  Finally later in the trading session we have Business Inventories and yet another diffusion index, this time released by TIPP, which rates consumer optimism based on a survey of around 1000 people.

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