Euro Selling Possible as German Inflation Shrinks For the First Time in 23 Years

The Euro may see selling pressure ahead as preliminary estimates of Germany’s Consumer Price Index show that the annual inflation rate shrank for the first time in over two decades in June, threatening the Euro Zone’s largest economy and the region as a whole with the onset of deflation.

Key Overnight Developments

• New Zealand’s Economy Shrank More than Forecast in First Quarter

• Japanese Annual Inflation Rate Falls Most in Seven Years in May

• US Dollar Lower as Stock Exchanges Advance in Asian Trading

The Euro advanced in overnight trading, adding 0.4% against the US Dollar to test as high as 1.4047. The British Pound followed suit, testing as high as 1.6444. The greenback saw selling pressure as Asian stock exchanges gained on news that US GDP shrank less than expected in the first quarter