Webinar: Live Event Coverage: Euro-Zone Sentiment (Mar) with Martin Essex
Euro-Zone Confidence Misses Expectations but Euro Holds Its Ground
Confidence in the Euro-Zone was lower than expected by analysts and economists in March but there was little reaction in the Euro, which might have been expected to fall as the data suggested that any reduction in monetary stimulus by the European Central Bank is still unlikely any time soon.
Moreover, the earlier release of data from individual German states showing inflation lower in March than in February implied lower inflation in Germany as a whole and indeed in the Euro-Zone, also suggesting that the ECB could safely leave its current QE program in place.
However, that was offset by news that both consumer inflation expectations and selling price expectations rose in March from February, and that inflation could therefore move higher further down the line.
The headline business climate index came in 0.82, unchanged from February but below the predicted 0.86. Expectations were missed too for economic, industrial and services sentiment.
The Euro, though, which has fallen sharply over the last few days, remained stable.
Chart: EURUSD 5’ Timeframe (March 28 – March 30)
For more on the confidence data, read the DailyFX Market Alert here
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at email@example.com
Follow Martin on Twitter @MartinSEssex
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