European focus: Germany's ZEW index of institutional and analyst

The yen climbed from a three-month low against the dollar on speculation the fastest economic growth in China will have a positive impact on Japanese export.
Germany's ZEW index of institutional and analyst expectations fell to 15.1 from 37.8 in June, the lowest since May prior year. Economists expected a decline to 35. Remind that index showed lower figures every month since it reached a two-year high in January.
The report may bolster concern that ECB higher borrowing costs are hurting growth. The euro has slipped already 2.9% since reaching a high for the year last month.
In an outlook of euro weaknesses it is a really bad signal.,'' said Niels Christensen, Societe Generale SA. People have been pretty quick to sell the euro and the move could go a bit further."
The dollar may lose ground before a report on assets inflow in US. Data
will probably signal international investors didn't buy enough U.S. securities to cover the country's $63.8 billion trade deficit for May.
Forecasts testify overseas assets increased by $56 billion in May, compared with $46.7 billion in April. To cover US deficit it is necessary to involve $2.5 billion per day.
This is certainly not enough,'' said Michael Woolfolk, Bank of New York. It would be viewed negatively by the market."