European Commission’s euro area economic sentiment index falls further in November

Euro area’s economic confidence came in weaker again in November. The European Commission’s euro area economic sentiment index continued with its downtrend in November, declining for the 11th consecutive month. The index fell by 0.2 points to 109.5, the lowest since May 2017. This was slightly below expectations, as business sentiment rose for the first time in six months in spite of a deterioration in consumer sentiment to the lowest level since March 2017.

Looking into details, contrasting with the soft flash manufacturing PMI, there was a surprise modes rebound in industrial sector sentiment reflecting stronger production expectations and an improved assessment of domestic orders. Retailers also came in slightly more positive. In spite of softer demand expectations, services sentiment was almost the same as the construction sector sentiment.

“The survey had mixed messages about labour market conditions with employment intentions firm in construction and retail but downgraded in services. And while the ECB will note the increased selling price expectations in industry and services, they fell in retail and consumer price expectations moderated too”, noted Daiwa Capital Market Research in a report.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Euro was bullish at 95.3772, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 24.4439. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex