The European Commission’s Directorate-General for Economic and Financial Affairs (DG ECFIN) reports that euro area consumer confidence fell 1.0 point in September. The decline was slightly larger than expected and ended four months of recovery. Confidence across the broader EU also weakened.
Quick analysis: Consumers had been feeling gradually better, but September’s reading suggests that improvement has stalled. Weaker confidence may weigh on household spending and is a growth consideration for the European Central Bank. The euro could face some pressure from the softer reading, although inflation and other economic data will also shape the bank’s decisions.
What this report measures: DG ECFIN’s monthly flash indicator is an early estimate of consumer sentiment in the euro area and the wider EU. Traders watch it for clues about future household spending and economic growth. The flash figures can be revised.
The EURUSD maintains a bearish bias below the 100 hour moving average at 1.1476, and a swing area between 1.14715 and 1.1482. Staying below those levels keeps the sellers in firm control. Moving above would tilt the bias a little more to the upside but with work to do. On the downside, the low price today stalled against swing levels going back to the end of July at 1.14338. Getting below that level opens the door for further selling (see chart below).
This article was written by Greg Michalowski at investinglive.com.
Source: Investing Live - News
