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German Consumer Sentiment Stagnates, Weighing on the EUR

By:
Bob Mason
Published: Jul 28, 2021, 12:46 UTC

Economic data from Germany disappoints, as consumer confidence stagnates to put the EUR under pressure ahead of the FED policy decision...

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In this article:

Following German business sentiment figures on Monday, German consumer confidence was in focus this morning.

Consumer Sentiment

For August, the GfK Consumer Confidence Index held steady at -0.30. Economists had forecast a decline to -2.0.

According to the GfK survey,

  • Following a 10-year high, economic expectations moderated in July, falling by 3.8 points to 54.6.
  • Income expectations slipped by 5.1 points to 29 points, which was still up 10 points year-on-year.
  • By contrast, the propensity to buy was on the rise, increasing by 1.4 points to 14.8. In spite of the rise, consumption propensity was still down by almost 28 points year-on-year.

Market Impact

Ahead of today’s consumer sentiment figures, the EUR had risen from a pre-stat low $1.18125 to a pre-stat high $1.18276.

In response to today’s stats, the EUR rose to a post-stat and current day high $1.18306 before falling to a post-stat and current day low $1.17919.

At the time of writing, the EUR was down by 0.20% to $1.17923.

EURUSD 280721 Hourly Chart

Next Up

U.S trade data ahead of the all-important FED monetary policy decision and press conference…

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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