Germany's Consumer Confidence at Highest Level in 7 Years
- Germany’s GfK Consumer Index In-Line with Expectations at 8.5 in April
- Euro Little-Changed Against US Dollar Following Data
- ECB Makuch Comments Weigh on Euro and Boost ECB Stimulus Speculation
The Euro rose (albeit marginally) against the US Dollar following the release of Germany’s GfK Consumer Confidence Survey. The forward-looking index reported at 8.5 in April and in-line with expectations. The index remained at the same level from March and is the highest level in seven-years. Considering the limited implications of the data point on ECB monetary policy the move may see limited follow-through.
Yesterday, the Euro fell against the US Dollar following comments made by European Central Bank Member Makuch. The Eurozone has been facing a low-inflation environment and ECB’s Makuch said that the central bank is preparing measures to combat low-inflation. These comments weigh heavier on the Euro as they relate to ECB’s primary objective in maintaining price stability. DailyFX Strategist Ilya Spivak maintains a long-term bearish outlook for the Euro, but remains cautious to taking on a short position as EUR/USD is at a critical channel floor.
Later today traders may be looking ahead to February’s US Durable Goods Orders. Expectations point to the largest increase in three months.
EUR/USD 5-Minute Chart. March 26, 2014
Charted created by David Maycotte using Marketscope 2.0.
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-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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