Euro Area Consumer Confidence Declined To -16.1 In January

Key Insights

• Euro Area Consumer Confidence pulled back from -15.1 in December to -16.1 in January.
• Richmond Fed Manufacturing Index decreased from -11 to -15.
• The weak economic data did not provide support to gold, which remained stuck near the $2025 level. 

On January 23, traders had a chance to take a look at the Euro Area Consumer Confidence report. The report indicated that Consumer Confidence declined from -15.1 in December (revised from -15) to -16.1 in January, compared to analyst consensus of -14.3.

Euro Area Consumer Confidence has settled below the -15 level since early 2022. From a big picture point of view, Euro Area Consumer Confidence is slowly moving higher after the strong pullback which was caused by the energy crisis in late 2022 – early 2023.

At current levels, Euro Area Consumer Confidence remains well below its long-term average, which is not surprising given the problems of the European economy.

EUR/USD tested new lows after the release of the report. Currently, EUR/USD is trying to settle below the 1.0850 level. Forex traders believe that Fed will be more hawkish than ECB in the near term, which is bearish for EUR/USD.

In the U.S., traders focused on the Richmond Fed Manufacturing Index report. The report showed that Richmond Fed Manufacturing Index decreased from -11 in December to -15 in January, compared to analyst consensus of -7.

SP500 settled near the 4860 level as traders reacted to the report. The general market sentiment remains bullish as traders bet that AI will boost profitability in many industries.

Gold is trading near the $2025 level after an unsuccessful attempt to climb above $2040. Stronger dollar and rising Treasury yields serve as negative catalysts for gold markets.

For a look at all of today’s economic events, check out our economic calendar.