EUR/USD dropped to 1.1257. German ZEW sentiment unexpectedly jumped in June.

EUR/USD was trading higher throughout the day, until it sharply dropped at the end of the European session. As of 1:00 PM EDT, the pair was trading at 1.1257, which represents 0.49% decline from the previous close.

European shares rose today. Below is presented the performance of major indices:

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  • FTSE 100 closed at 6,226.55, up 0.36%.
  • CAC 40 increased 0.61% finishing at 4,367.24.
  • Euro Stoxx 50 was trading at 2,967.34 as of 5:50 PM GMT, which is 0.83% higher than the previous close.

German ZEW sentiment unexpectedly jumped to 19.2 in June, significantly higher than the analysts’ estimate of 5.1 points. Eurozone economic sentiment rose to 20.2 points.

“The improvement of economic sentiment indicates financial market experts have resilience in the German economy. However, general economic conditions remain challenging. Apart from the weak global economic dynamics it is mainly the E.U. referendum in Great Britain which causes uncertainty,” said Achim Wambach, president of ZEW.

ECB president Mario Draghi announced today that the European Central Bank has done all necessary preparations ahead of UK’s referendum results. “Uncertainty remains high and downside risks are still significant due to the continued fragile state of the global economy and geopolitical developments” said Draghi.

Oil prices fell today. As of 1:05 PM EDT the WTI Crude was trading at 48.58 USD/bbl down 1.60% and Brent Crude at 50.07 USD/bbl, which is 1.15% lower than the previous close.

“There is probably too much confidence about the outcome of the Brexit referendum at present—recent days have shown just how quickly public opinion can shift. Against this backdrop today’s [oil] price losses make sense” wrote Commerzbank in the note.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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