German economic sentiment soars as money markets await Central bank minutes

The wise money markets have rallied on good German news- as the German Investor confidence index climbed by 16.7 points to hit a 38 month high to 48.2.German economic sentiment soars as money markets await Central bank minutesMost investors are upbeat that the worst is over for the economies in the Eurozone and the slow rebound has helped the euro gain considerable strength as it breaches the 1.3425 level, in opening trade.

The main event today will be Federal Open Market Committee (FOMC) minutes which will be released after the European markets close.

In other news from Europe, Moody’s has warned that Spanish banks face continued liquidity and funding pressures despite most of them being able to tap the bond market earlier this year.

From the UK, Sterling has come under renewed selling pressure across the board against most currencies.

Investors remain extremely watchful and cautious leading into the evening given the expected release of the BOE’s Monetary Policy Committee minutes as well as domestic unemployment figures.

The currency is likely to remain subdued as we lead up to these events later today and any clear direction will be determined by the minutes.

Markets are extremely cautious as a struggling UK economy tries to grapple with salvaging its coveted AAA rating and to try and avoid an almost inevitable triple dip recession.

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