European Investor Confidence Weakens for a Sixth Consecutive Month
• Germany’s Exports Spur Debate – Wall Street Journal
• Greek Aid Options Narrowed – Wall Street Journal
• Euro Group Stands Ready to Help Greece - Financial Times
• German Investor Confidence Declines for Sixth Month - Bloomberg
• EU Lays Groundwork for Greek Lifeline to Bolster Euro - Bloomberg
EUR/USD– German investor confidence in March extended its five month decline on the back of the economy struggling to expand, while Greece’s fiscal woes weigh on the financial markets. The index of economic sentiment slip to 44.5 from 45.1 the previous month, while the current situation rose to -51.9 amid expectations of -52.0, the ZEW Center for European Economic Research said today. Meanwhile, the Euro-Zone ZEW survey of economic sentiment tumbled to 37.9 in March, falling more than economists forecasts of 38.5, also due to the main concern that Greece will be unable to rein in on its soaring budget deficit. It is noteworthy that Bundesbank President Axel Weber stated that “I see a risk that we will see a very weak quarter or even a slight minus” in gross domestic product, “but then the second and third quarters would be even stronger,” thus, further declines in the euro may be likely in the short term. Looking ahead, the ECB is widely expected to keep their benchmark interest rate unchanged at 1.00% in order to encourage a sustainable recovery as confidence continues to weaken amid a deteriorating labor market paired with tight credit conditions. To discuss this and other topics, please visit the EUR/USD forum.
Written by Michael Wright, DailyFX Research
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