The Gfk German Confidence Index was released his morning coming out lower than previous month at but in line with expectations. April’s index moved a notch down to 5.9 from 6.0 in March. This is the first decline in 10 months as recent geopolitical events affected consumer sentiment. Additionally, German elections over the weekend slightly brought down the Euro after Chancellor Merkel lost votes in a key region of Germany.
The Confidence Index is released monthly by the Gfk Market Research Group in Germany and is a leading indicator of consumer spending which makes up the most of economic activity in an economy.
After release of the news, the EURUSD rose some 22 pips within 20 minutes from 1.4108 to 1.4131. The Euro is buoyed by expectation of an interest hike by the ECB very soon.