The euro dollar exchange rate is 0.339% at 1 EUR = 1.4396 USD at 9 AM. The euro pound exchange rate is 0.045% higher with 1 EUR = 0.8811 GBP. Things have not gone too well for the euro this morning. The euro dollar exchange rate has weakened after German GDP figures have been released that have disappointed investors. German data showing GDP growth slowed to 0.1 percent in the second quarter, much less than a consensus forecast of 0.5 percent. Market players are now focused on euro zone GDP data at 0900 GMT, and a Franco-German summit in Paris this afternoon at which President Nicolas Sarkozy and Chancellor Angela Merkel will meet to discuss potential solutions to the region's debt crisis. Currency markets however recognise that Merkel cannot provide a magic solution: The German Chancellor faced dire political warnings from her liberal Free Democrat coalition partners yesterday that a German pledge of support for eurobonds at today's euro crisis summit in Paris would risk bringing down her government. The stark alternative was spelt out by the liberals as the German Chancellor simultaneously faced mounting global and European pressure to drop her country's opposition to eurobonds because they were considered the "only way out of" the euro crisis, reports the Independent. Currency analysts at investment UBS have also expressed their doubts about any positive outcome today: "We have our doubts however, especially given that both governments have explicitly stated that eurobonds will not be on the agenda. Instead, all investors are likely to get is yet another pledge to implement the July 21 summit proposals as quickly as possible. A Wall Street Journal article released overnight suggested the leaders were being forced to reconsider the prospect of Eurobonds in light of market conditions. This remains politically controversial but cannot be dismissed outright any longer."

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