EUR/USD- Euro Posts Gains Despite Weak German Data

The euro has posted gains in Tuesday trading, as the pair has pushed above the 1.31 line in the European session. There are numerous releases out of both the Eurozone and the US on Tuesday, so the markets will be busy reviewing all these numbers. In the Eurozone, German ZEW Economic Sentiment dropped in June and came in well below the estimate. There was better news from the Eurozone ZEW Economic Sentiment, which climbed to a four-month high. Eurozone inflation data matched the forecast, and Italian and Eurozone Trade Balance beat their estimates. In the US, Tuesday's major event is Core CPI.

German ZEW Economic Sentiment was released earlier on Tuesday, and the key indicator did not impress, falling from 38.5 points to 36.3. This was well short of the estimate of 39.8 points. This indicator points to weaker confidence in the German economy on the part of institutional investors and analysts, and will increase market concern about the health of the German economy....