FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that euro area news has been mostly constructive.
"Yesterday, investors learned that the credit environment in the euro area has improved, on both the supply and demand."
"Today investors learn that both German and French consumption picked up in June and by more than expected. In Germany retail sales rose 1.3% (vs 1.0% expected)."
"French consumer spending rose 0.9%. The consensus was for a 0.4% decline though the May series was revised to show a 0.7% gain instead of 1%."
"The market also learned today that labor market improved in both Germany and Italy. In Italy the unemployment rate slipped to 12.3% from 12.6%."
"The consensus did not expect it to have changed. This matches the lowest rate since last August. In Germany, the unemployment rate was steady at 6.7%, but the number of unemployed fell 12k, whereas the market had expected only a 5k decline."