German Consumer Confidence Improves, Supporting the EUR

Economic data from the Eurozone was on the quieter side this morning with German consumer sentiment in focus.

GfK Consumer Climate

For June, the GfK is forecasting consumer confidence to rise from -8.6 to -7, based on the findings for May. Economists had forecast an increase to -5.2.

According to the latest GfK survey,

• The economic expectations indicator surged by 41.1 points to its highest level in more than 3-years in May.
• Supported by the sharp rise in the economic outlook, income expectations increase by 19.5 points in May. Compared with the same period of the previous year, income expectations were up more than 25 points.
• Propensity to buy, however, fell for the first time in 4-months, falling by 7.3 points to 10 points. In spite of the decline, this was still 4.5 points higher than the same month a year earlier.

Market Impact

Ahead of the numbers the EUR had fallen to a pre-stat and current day low $1.21753 before finding support.

In response to data, the EUR fell to a post-stat low $1.21869 before rising to a post-stat high and current day high $1.22084.

At the time of writing, the EUR was up by 0.11% to $1.22074.

Next Up

2^nd estimate GDP, core durable goods, and weekly jobless claims figures from the U.S.

ECB and FOMC member chatter will also need monitoring…