Eurozone consumer confidence came in below expectations for October, but it is still at its best since July 2011. Risk appetite is a little shaky today, and there are still questions about the sustainability of the eurozone’s economic recovery.
The European Commission is reporting that consumer confidence has improved recently. In October, the reading improved to -14.5 from -14.9. The reading wasn’t in line with the expectations for a rise to -14.4, but it is still respectable and indicates that the eurozone recovery continues to move apace.
However, the euro isn’t gaining as a result of this news, especially against the US dollar. Risk aversion is making an appearance today, and that is weighing on high beta currencies like the euro. Indeed, euro is down against the dollar and the yen right now. However, with the latest minutes from the BOE meeting, the euro is gaining against the pound.
For now, there are questions about what is next for the euro. France is once again decrying the strength of the euro, and calling for some weakness to help continue to boost the fledgling recovery.
At 15:29 GMT EUR/USD is down to 1.3778 from the open at 1.3781. EUR/GBP is up to 0.8519 from the open at 0.8489. EUR/JPY is down to 134.0270 from the open at 135.2180.
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