EUR CONSUMER CONFIDENCE

[spraysprak_02]

The Consumer Confidence is a measure of how well consumers are confident with the state of the European economy which reflects consumers spending capability based on household spending and saving tendencies. It also gauges their expectations regarding future economic conditions and situations. This indicator is based on a survey of over 2,300 consumers expressing their sentiment on current financial situation, employment, inflation, and climate for major purchases. However, it is expected to decrease in the upcoming session due to the weakening of EUR in the market.

[spraysprak_02]

Consumer confidence is an economic indicator which measures the degree of optimism that consumers feel about the overall economic activity and their personal financial situation. For the month of November, Euro-zone consumer confidence weakened offsetting an improvement in the business climate and causing the zone's overall economic sentiment index to fall. However, the commission said the euro zone industrial confidence indicator rose slightly in November. So, I remain neutral on EUR/USD

[spraysprak_02]

The Import Price Index informs the changes in the price of import products into Germany. It's released by Destatis. The higher the cost of imported goods, the stronger the effect they will have on inflation, redounding in a higher probability of a rate rise by the ECB. Therefore, a high reading should be taken as positive for the EUR and this currency will be in a bearish.

[spraysprak_02]

Consumer Confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. It is anticipated to slow down at -10 on the next release, good for Euro currency.

[spraysprak_02]

Import Prices that measures the price of goods purchased by importers, is about to increase by this coming session. It contributes to inflation for businesses and consumers, especially those who rely heavily on imported goods. . A 0.2% rise is expected now contributing to inflation in the German market.

[spraysprak_02]

German import prices are climbing every year. Last month, it went beyond an increase of 8.6%. Compromise forecast was for 9.7%. From previous months, the index rose by 0.3%, a little faster than the 0.2% increase seen in the earlier month. Economists had predictable monthly inflation to continue at 0.2%. I remain bullish to EUR

[spraysprak_02]

It has been rising very slowly and staying negative in recent months, moving up to -11 (light pessimism). It’s predicted to remain at this level,
still my forecast about the next release of this indicator would be negative. It is particularly alarming the lack of confidence of people to the economic performance of the country for the past 12 months.

[spraysprak_02]

German Import Prices (EUR) is doing well as it contiunue to rise up, a related figure will be released for this showing the increase of it. Import prices made a huge impact to consumer prices as well. Considering the big drop of 0.9% last month, prices of imported goods are are expected to rise by 0.5% this time.

[spraysprak_02]

Last month, a drop of -11 has been observed in the indicator Consumer Confidence, it is anticipated to increase in the upcoming release. Since this accounts for the majority of the overall economic activity, expect the Euro to appreciate.

[spraysprak_02]

German Import Prices under Euro has been climbing up for about 3% from the earlier months. Like what they said the Bunds were a touch lower after the import price data. Judgment day has finally come for Euro and I can say that it would be bullish again same as the past months result. Comments and suggestions are very welcome.