EUR outperforms, helped by a better than expected German IFO survey

RBC Capital Markets notes:

EUR was already trading higher, but was given an additional leg up by July's German Ifo survey (o/n high 1.1130). The headline index came in at 108.0 (consensus 107.2), breaking a run of three successive declines and the improvement was broadly-based across current conditions and expectations. European July activity data suggest the knock-on impact of the Greek crisis on activity in the broader Eurozone has so far been negligible. The other bit of data overnight was Euro area June money supply (up 5.0%y/y). 

RBC's European economist Timo del Carpio says there are continued signs that the credit is continuing its steady process of healing. While the growth rate in loans to the private sector dipped slightly in June, corporate lending remained in positive territory. Loans to households also picked up further this month. Overall, while the improvement was relatively modest this time around, it must be considered in the context of heightened uncertainty in the euro area, particularly around Greece. We see this picture of slow but steady improvement as consistent with the view offered by the latest Bank Lending Survey from the ECB published earlier this month