Euro-area Consumer Confidence Actual -31, Expected -33, Previous -34
Release Explanation: Consumer Confidence is a survey of the sentiment of the public regarding current and future economic conditions. “The release builds an economic picture of the mood of the economy’s consumer and therefore, how well the service based economies may fair over the coming months,” TheLFB-Forex.com Trade Team said.
Trade Desk Thoughts: Consumer confidence in the Euro-area improved to -31, beating analysts’ estimates and rising from the -34 read the previous month. The better than expected read indicates that consumers are becoming more optimistic that the economic contraction may be slowing or at least close to a bottom. However the report is still below the zero benchmark indicating an overall negative outlook. The last time the consumer confidence report was above the zero benchmark was at the end of 2000.
Forex Technical Reaction: The report failed to spark any significant movement in the currency market. The euro has gained 80 pips against the dollar tonight, moving above the 1.3200 level and the 20 and 100 day simple moving averages.