It is ironic that the euro soared to a record high even though German investor confidence hit a record low.
The German ZEW survey, of analyst sentiment has been skewed towards pessimism for months, but the combination of the recent rate hike, surging inflationary pressures and weaker domestic and global growth sent confidence tumbling. Eurozone growth should weaken further in the coming weeks, especially with the Euro climbing to a new record high. The ECB has been mute about intervention but if oil prices continue to fall, they will probably start entertaining the notion. However for the time being, it is the US dollar that is driving the currency pair. Eurozone consumer prices are due for release tomorrow and Switzerland will be releasing their retail sales report. The market expects consumer spending to rise, which could lift the Swiss Franc for no other reason than the fact that the country could be doing comparably better than many other G10 nations.