The only economic data release of note yesterday came in the form of the eurozone’s flash consumer confidence reading for November. Last month, it dropped to -2.7 and had been expected to fall further to -3 this month. However, it actually came in below that, dropping to -3.9. It is the weakest reading since March 2017 and is slightly concerning.
Euro movements against the dollar were fairly sedate and it could have been much worse against the pound which didn’t have quite as good a day as we might have expected at the start. There could be some moves today through, with continued reaction to the Brexit political declaration text and a raft of PMI data from across the eurozone.
We will see composite, manufacturing and services PMI from Germany and the eurozone, as well as the final reading of the German GDP growth rate for the third quarter of 2018. On a quarterly basis, the figure is expected to sharply decline to -0.2% from 0.5% the previous quarter, while on an annual basis a figure of 1.1% from 2% is expected.
