The Euro weakened by -1.7% versus the Dollar as concern about Greece's debt crisis rose and German ZEW economic sentiment came out weaker showing investors are more pessimistic on the economic outlook. Overall, EUR/USD traded with a high of 1.4413 and a low of 1.4029. EUR/USD has crossed below its 200 day moving average and is trading on a bearish tone in its 4 month lows. A retest to 1.43 that will act as a resistance level is possible. Looking Ahead, GFK German Consumer Climate is expected weaker with 3.2 on Monday. German Ifo Business Climate is expected slightly higher with 95 on Tuesday. Consumer Confidence is expected slightly higher with -15 on Thursday. German Unemployment Change is expected to show 17K more jobs were added.
The Pound weakened by -0.9% versus the Dollar and gained versus the Euro as the Dollar rallied and mixed economic data was released. CPI figures came out stronger than expected along with positive Claimant Count Change and lower Unemployment rate than expected. U.K Budget woes sent the Pound lower and along with weaker Retail Sales helped it cross below its 200 day moving average. Overall, GBP/USD traded with a high of 1.6458 and a low of 1.6077. GBP/USD has crossed below its 200 moving day average and is trading on Bearish territory. The 1.62 support has been breached and the pair is struggling to keep above 1.61. Looking Ahead, the most major economic data will be 4th quarter Prelim GDP on Tuesday which is expected to rise by 0.4% versus -0.2% prior, sharp volatility is expected to follow the release. GFK Consumer Confidence wand Nationwide HPI will be released on Friday.