Euro Area Consumer Confidence Meets Estimates, EUR/USD Remains Stuck Near 1.0690

Key Insights

• Euro Area Consumer Confidence increased from -20.9 in January to -19 in February. 
• The report indicated that Consumer Confidence continued to improve despite recession worries. 
• EUR/USD is swinging between gains and losses as traders are not ready for big moves due to the holiday in the U.S. 

Euro Area Consumer Confidence Continues To Improve

On February 20, EU released the flash reading of the Euro Area Consumer Confidence report. The report indicated that Consumer Confidence improved from -20.9 in January to -19 in February, in line with the analyst consensus.

The Euro Area Consumer Confidence has been moving higher for five months in a row after touching bottom in September 2022, when the Eurozone was hit by a severe energy crisis.

Last week, the ECB Economic Bulletin showed that the ECB would continue to raise interest rates at a steady pace. However, the ECB Economic Bulletin has also hinted at a potential pause in rate hikes after the March meeting.

Consumer Confidence is an important indicator of economic activity. As Euro Area Consumer Confidence is slowly moving higher, traders can expect that the upcoming economic data from the Eurozone may also improve, although the long-term economic outlook remains highly uncertain.

EUR/USD Mixed After Consumer Confidence Report

EUR/USD is swinging between gains and losses after the release of the Euro Area Consumer Confidence report.

The report met analyst expectations, and it remains to be seen whether it will have a material impact on the next ECB Interest Rate Decision.

Traders should also note that markets will be slower today due to the holiday in the U.S. Thus, markets may not be ready for big moves in today’s trading session.

For a look at all of today’s economic events, check out our economic calendar.