European Commission’s confidence indicators for Euroarea likely improved in November

The European Commission’s confidence survey is expected to have improved a bit in November. In its preliminary release last week, the consumer sentiment perked up, reaching its highest level in 2016. Along with the stable flash PMI figures, which showed that the composite index came in at 54.1 and is in line with GDP growth of 0.6 percent quarter-on-quarter in the fourth quarter, indicates that there might have been broad based improvement in the rest of the ESI figures, according to a Societe Generale research report. This might be another positive sign for the euro area economy’s growth in the fourth quarter.

Meanwhile, the manufacturing PMIs are expected to confirm the flash estimate and indicator towards a strong fourth quarter economic growth. The manufacturing PMI is likely to have come in at 53.7, the same as the flash PMI. The preliminary figures for Germany and France weakened a bit, implying a considerable rebound in the figures of Italy and Spain.

The print for Spain is expected to have rebounded up to 55 for the first time since January 2016. While the scenario seems healthy for the euro area economy, it is significant to note that the order to inventory ratio has dropped considerably and indicates towards a loss of momentum in manufacturing output in the first quarter of 2017, added Societe Generale.

At 06:46 the EUR/USD pair is trading at 1.0649. At 06:00 GMT the FxWirePro's Hourly Strength Index of Euro was bullish at 86.1653, while the FxWirePro's Hourly Strength Index of US dollar was slightly bearish at -56.4418. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex