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    Decline of consumer confidence in the Euro area. Is Greece to blame?

    Yesterday’s report, released by the European Commission, confirmed the previously presented preliminary information: Eurozone consumer confidence index fell from the March level of -3.7 to -4.6 in April (seethe Chart). Thus, March levels remained the highest seen in the entire post-crisis period (more precisely, from 2007).

    euro-area-consumer-confidence30-4-15

    There are certainly no reasons for panic. Most likely, we are now dealing with a banal correction after the renewal of highs, similar to that registered by the composite Eurozone business activity index in April (Composite PMI). There are no serious reasons for the Euro area consumer sentiment decline in April: inflation in the region remained low, supporting real income growth and employment growth according to Markit Economics, was the fastest for the entire period 2012-2015.

    Perhaps the levels of consumer confidence in April were negatively affected by the media-inflated hype around a possible Greek default. In this case, if in May we will see a breakthrough in solving this problem, the index will retrace to the March levels, or even exceed them.

     

    Dear traders, please post your comments to our forecasts and share your own opinion. Your ideas can be very helpful for the newcomers in the forex market. Thank you!

    Yesterday’s report, released by the European Commission, confirmed the previously presented preliminary information: Eurozone consumer confidence index fell from the March level of -3.7 to -4.6 in April (seethe Chart). Thus, March levels remained the highest seen in the entire post-crisis period (more precisely, from 2007).

    euro-area-consumer-confidence30-4-15

    There are certainly no reasons for panic. Most likely, we are now dealing with a banal correction after the renewal of highs, similar to that registered by the composite Eurozone business activity index in April (Composite PMI). There are no serious reasons for the Euro area consumer sentiment decline in April: inflation in the region remained low, supporting real income growth and employment growth according to Markit Economics, was the fastest for the entire period 2012-2015.

    Perhaps the levels of consumer confidence in April were negatively affected by the media-inflated hype around a possible Greek default. In this case, if in May we will see a breakthrough in solving this problem, the index will retrace to the March levels, or even exceed them.

     

    Dear traders, please post your comments to our forecasts and share your own opinion. Your ideas can be very helpful for the newcomers in the forex market. Thank you!


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