Forex News: Euro Declines Despite Improved German Consumer Confidence
THE TAKEAWAY: German GFK survey rises to 5.8 for February, better than expected -> Euro investors look for a recovery in the German economy -> Euro declines despite survey
German consumer confidence will rise in February from a 7-month low, according to the GFK survey. The survey result was reported at 5.8, slightly higher than an expected 5.7 and better than January’s revised 5.7 survey result.
In January, the business expectations survey rose to -11.3 from a previous -17.9, while the willingness to buy survey result rose to 36.0 from 21.2, according to GFK.
The German economy has been suffering from the Euro debt crisis along with the rest of the region, and the economy only grew 0.7% in 2012, down from 3.0% growth in 2011. The ECB has forecasted that the Euro-zone economy will begin to recover later in 2013, which should also help improve growth in the German economy. A rise in the rate of German GDP growth would be Euro positive.
However, the Euro did not significantly react to the better than expected survey result and instead dropped below 1.3450 in trading against the US Dollar. EUR/USD set a new 11-month high in Forex trading on Friday at 1.3479, which may now provide resistance. Support may be provided by a broken resistance level around 1.3380.
EURUSD Daily: January 29, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
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