The Euro remained weaker against the US Dollar despite the release of data which showed that consumer confidence across the 18-member Eurozone increased to its best level in over six years.
According to the European Commission’s preliminary measure of consumer sentiment, confidence rose to -7.1 in May from the -8.6 seen in the previous month. The figure has not been at that level since October 2007.
The rise comes in the face of concerns over the standoff between the West and Russia over the situation in Ukraine and suggests that consumers are seeing more cash in their pockets as the Eurozone recovery splutters along.
“The further brightening in consumers economic mood bodes well for consumer spending growth in the second quarter and will undoubtedly be greeted with enthusiasm in Brussels ahead of this week’s European parliamentary elections.
‘However, consumer spending across the Eurozone albeit improving has consistently lagged the recovery in consumer confidence in recent quarters. Consequently, we remain cautious on the strength of the upturn in consumer spending, with household deleveraging and subdued disposable income growth set to continue to act as restraining factors,” said an economist at ING.
The US Dollar found support from data which showed that the average number of mortgage applications made last week increased by 0.9% as interest rates remain low. The rise was the third consecutive increase in three weeks.
The share of applicants seeking to refinance climbed to 52%, the highest level since March, from the prior week’s 50.3%, today’s report showed.
Against the Pound the Euro declined further to its lowest level since December 2012 as UK retail sales data smashed forecasts and the Bank of England’s policy meeting minutes suggested that some policy makers were hawkish on the idea of raising interest rates.
Euro Exchange Rate News:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3658 ,
Euro,,British Pound,0.8092 ,
Euro,,Australian Dollar,1.4819 ,
Euro,,Canadian Dollar,1.4928 ,
Pound Sterling,,Euro,1.2357 ,
US Dollar,,Euro,0.7322 ,
[/table]
