European focus: The EUR dropped after a report showed investor confidence in Germany decreased[E]

The EUR dropped after a report showed investor confidence in Germany decreased to its lowest since July prior year.
The ZEW Center for European Economic Research said its index fell to 37.8 in June from 50.0 in May. Analytics expected data drop to 38.0.
Remind that this year EUR added 6.2% as traders raised bets that the ECB will continue raising itтАЩs benchmark rates. ECB has raised its key rate three times since December, to 2.75 percent. Investors expect the ECB to increase the benchmark rate to at least 3.25%.
Generally EU session on Tuesday showed dollar consolidation in a narrow ranges.
Market players wait for U.S. report today that may show inflation is accelerating, and will fuelle rumors the Federal Reserve will keep raising interest rates.
Now USD trades near a six-week high against the EUR.
FED Dallas President Richard Fisher yesterday noted ``some anxiety'' over inflation. This prompt speculations FED borrowing costs lift this month for the 17th straight time is .
We can see changes in FED representatives speech what led to sentiment reversal upon further FED rates lift, - says Mitul Kotecha, Calyon. This supported USD.
FED Cleveland President Sandra Pianalto, said yesterday the inflation rate exceeds its comfort level and the Federal Reserve will use measures to curb inflation and make it contained.