German Consumer Confidence Fails to Shift Sentiment towards the EUR

It was another relatively quiet day on the Eurozone economic calendar. German consumer sentiment was in focus going into the European session.

According to the January study,

• Both economic and income expectations improved as did purchasing propensity.
  • Economic expectations rose by 5.7 points to 22.8 points.
  • Income expectations increased 10.0 points to 16.9 points.
  • Propensity to buy saw a more modest 4.4-point increase to 5.2 points
• As a result, the GfK is forecasting a 6.7-point decline in consumer sentiment for February, up 0.2 points from January.
• There was an increase in the propensity to save, which pegged back a more material rise in consumer sentiment.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.12439 before falling to a pre-stat low $1.12152.

In response to today’s stats, the EUR rose to a post-stat high $1.12201 before sliding to a post-stat and current day low $1.12151.

At the time of writing, the EUR was down by 0.21% to $1.12154.

Next Up

4^th quarter GDP and initial jobless claim figures from the U.S. will be key later today. Durable and core durable goods orders are also due out but should play second fiddle to the key U.S stats of the day.