Euro slides after German data

The euro is off versus the US dollar after German consumer confidence missed expectations.

The latest consumer confidence figures were good, but not good enough to match expectations. The August report came in at 6.9, while analysts were expecting a reading of 7.1, and it fell short of the July figure of 7. Traders sold EUR/USD on the back of the announcement. Germany also released import prices data, and this report confirmed that import prices grew by 0.3% in August compared with July, telling us that domestic demand is increasing.

Greek debt has been back in the news for the last week. Angela Merkel stated that Greece should never have been allowed to join the euro, blaming the decision on her predecessor Gerhard Schroeder. The comment from Ms Merkel comes days after the German finance minister Wolfgang Schaeuble suggested that Greece will need another bailout. Germany is holding a general election next month, and many Germans feel that they alone are propping up the eurozone, so Ms Merkel may not be too eager to back another Greek bailout.

Spot FX EUR/USD chart

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