Euro Extends Decline As Consumer Confidence in Euro Zone Falls In July
Consumer confidence within the 17-nation euro area fell slightly in June amid uncertainty in the lead-up to the June 17 Greek elections and Spanish banking sector bailout. The Brussels-based European Commission reported today that the flash consumer confidence indicator in the single-currency bloc fell slightly to -19.6 in June after rising last month to -19.3. The consensus forecast according to 28 economists surveyed by Bloomberg News had called for a drop to -20.0.
With further contraction in the manufacturing and services sectors, the decline in household sentiment could signal that the economic slump in the euro zone deepened in the current quarter.
EURUSD 1-minute Chart: June 21, 2012
Chart created using Market Scope – Prepared by Tzu-Wen Chen
The euro extended its drop against the greenback, as the declining consumer sentiment adds to increased risk of contracting household spending and signals slower growth in the euro zone. At the time of this report, the EURUSD pair was trading lower at 1.2600 U.S. dollars.
--- Written by Tzu-Wen Chen, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.