German Consumer Confidence Hits the EUR

Economic data was on the lighter side going into the European session.

Germany’s GfK Consumer figures were in focus, however.

For September, the GfK Consumer Climate Index fell from -0.4 to -1.2. Economists forecasted a decline to -0.7.

According to the August report,

• In August, while income expectations improved slightly, both economic expectations and propensity to buy waned.
• As a result, the GfK is forecasting a value of -1.2 points in consumer sentiment for September.
• According to the GfK, there was also an increase in propensity to save.
• Concerns over COVID-19 weighed on sentiment and the September forecast.
• Additionally, the GfK noted that inflation is playing a role, with the cost of living up 3.8% in July, year-on-year.
• In June, sentiment had hit a 10-year high before retreating.

Market Impact

Ahead of today’s figures, the EUR had risen to a pre-stat and current day high $1.17739 before falling to a pre-stat low $1.17613.

In response to today’s stats, the EUR rose to post-stat high $1.17670 before falling to a post-stat and current day low $1.17606

At the time of writing, the EUR was down by 0.09% to $1.17615.

Next Up

U.S jobless claims and 2^nd estimate GDP numbers along with the ECB’s monetary policy meeting minutes.

While the U.S stats will be key, expect chatter from the Jackson Hole Symposium to have a greater impact.