THE TAKEAWAY: GFK Consumer Confidence Survey rises to a 5-year high in May -> German economy predicted to expand by 0.5% in 2013 -> Euro falls below 1.3100
German consumer has set a new five year high according to the GFK survey for May. Consumer confidence was reported at 6.2, beating expectations for 5.9 and up from the revised 6.0 survey result in April. Income expectations rose to 30.8 in April from 29.4 the previous month, while the willingness to buy rose to 37.6 from 36.2 in March.
The German economy is the biggest in the Euro-zone and has been one of the stronger economies through the Euro-debt crisis. However, German GDP declined by 0.6% in Q4, and the German government and Bundesbank are both predicting only 0.4% growth in 2013. Signs of improved economic growth in Germany are Euro positive.
However, the Euro did not significantly react to the better than confidence survey and instead fell back below 1.3100 against the US Dollar. Support may now be provided by the key 1.3000 figure, and resistance may come in by a 2-month high at 1.3201.
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EURUSD Daily: April 30, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .