Euro Rises on Improved German Consumer Confidence
THE TAKEAWAY: German GFK consumer confidence survey rises to 5.9 for March -> consumer expectations fall in line with Bundesbank forecast -> Euro rises
German consumer confidence rose to a four month high according to the GFK survey released for March. The survey was reported at 5.9, meeting expectations and up from 5.8 in the February survey.
German business expectations rose to -2.5 in the February survey, while income expectations dropped to 31.8. GFK said in a statement that “German consumers anticipate that the economy will steadily improve in the coming months.”
Following the economic decline in Q4, the Bundesbank is predicting that the German economy will return to growth in the current quarter on improved industrial production. The European Union predicts 0.5% German growth over the whole of 2013. The GFK survey shows German consumers’ expectations are in line with the central bank forecast. Signs of German economic growth are Euro positive.
That is why the Euro rose about twenty points against the US Dollar to 1.3088 in Forex markets following the report. Resistance may be provided by the first monthly pivot support line around 1.3184, and support may continue to be provided by the key 1.3000 level. (To learn how to incorporate overbought/oversold signals into your trading click here.)
EURUSD Daily: February 27, 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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