Consumer sentiment in Germany has weakened once again this month. While the consumer climate has fallen slightly for the fourth time in a row, its decline is significantly less than in previous months. Following a value of 9.4 points in November, the overall indicator is forecasting 9.3 points for December. While the willingness to buy rose modestly in November, both the economic and income expectations have suffered slight losses.
German consumer confidence is continuing to wane, while economic expectations are maintaining their downward trend. The persistently high influx of asylum seekers has seen economic optimism fall further, and has also had a detrimental effect on the income expectations indicator, which has also experienced losses. In contrast, the propensity to consume is currently bucking this trend and, despite the general economic downturn, actually increased this month.
Euro is currently being traded around 1.05080 level. Pair is likely to find support around 1.0550 handle and resistance above 1.0610 area.
