EUR: German consumer confidence comes below expectations but still strong

It was a bit of a mixed day for the euro yesterday, as it made some gains against sterling initially but losses against the dollar. The major release of the day was German consumer confidence which is set to remain unchanged in December 2017. The figure came in at 10.7 which was just below expectations of 10.8, but it still indicates a strong level of confidence, despite the recent collapse in German coalition talks.

Today is a busy day for eurozone economic data, as we have the business confidence for November, as well as the industrial, services and economic sentiment numbers from the eurozone. There is also the consumer confidence reading for November and the European Central Bank will publish its latest financial stability review.

Finally, this afternoon we will see the inflation rate from Germany. As the eurozone’s largest economy, it will be interesting to see what the number is. It is expected to drop to 1.6% from 1.8% on an annual basis.