Pressures on the ECB to cut interest rates was eased as the ZEW Survey showed a surprising improvement in German Investor Confidence, and led to the biggest gain for the euro this month.
Investor confidence beat expectations as it rebounded from a 15 year record low of minus 45 to minus 39.5. The resilience amongst European investors has stoked further speculation that the ECB will not look to cut rates in the near future as the German Finance Minister Peer Steinbrueck refuted growing speculation that President Jean-Claude Trichet will take a neutral stance on the ECB’s monetary policy. The German Wholesale Price Index and Eurozone’s Industrial Production figures are due for release tomorrow.
