Few traders viewed this morning’s publication a surprise given the tense nature of the foreign exchange (forex) market these past few weeks. Risk aversion is gaining momentum as the August 2 deadline approaches for the US to lift its debt ceiling and as Europe continues to experience less-than-stellar performance.
Debt woes on both sides of the Atlantic appear to be crushing any sentiment of growth. The publication by GfK of its consumer climate reading in Germany revealed a minor downtick in optimism, though the overall mood remains positive. The EUR was little affected by such data given the overarching events of the week.
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