EURO Apathy Could Pressure The 'Single' Currency Further

Market sentiment has not changed slap-bang in the middle of the European holiday 'silly' season. There is noise being made, but the depth of asset class liquidity remains highly questionable. Historically, this is to be expected this time of year - FX price action has been muted and trading thin. Investors seem to be weighing up a solid equity session in China against weakness in Japan, while waiting for a fresh economic catalyst later in the week.

With no major data releases on either side of the Atlantic, this is shaping up to be a rather quiet start to the week. The pace will definitely pick up as the week wears on, however, with German ZEW survey tomorrow and the preliminary estimate of Q2 Euro-zone GDP on Wednesday. Investors will also eye two key Fed speeches this week, as they continue to gauge the timing of any Fed tapering – Atlanta's Lockhart and St. Louis Fed president Bullard speak Tuesday and Wednesday. So far, Fed speakers are indicating that tapering could...