According to the latest survey of around 2000 German published by the Nuremberg-based GfK institute on Thursday, the consumer confidence improved slightly heading into July, as the lockdown easing fueled optimism about their income prospects.
The consumer sentiment index improved to -9.6 for July vs. -18.6 previous while beating the forecast for -12.0.
GfK’s consumer expert Rolf Buerkl noted: “The extensive support provided by the economic stimulus packages, such as the announcement of a temporary reduction in VAT is certainly a contributing factor.”
“Provided that retailers and manufacturers also pass these reductions on to consumers, it can be assumed that one or two planned purchases will instead be made in the second half of 2020, thereby supporting consumption this year,” he added. .
The shared currency remains uninspired by the upbeat German data, as EUR/USD holds the lower ground amid broad US dollar strength driven by the risk-adverse market conditions.
EUR/USD trades at 1.1245, almost unchanged on the day.