- GfK research company
Wednesday was a good day to trade EUR/USD, as on the back of positive statistics data and substantial political progress in Germany, the pair soared to its one-month high, moving above 1.36. The GfK consumer climate report, showed an index measuring German consumer mood for December rose to 7.4 points, against analysts' expectations the gauge will remain steady at November's upwardly revised 7.1 level. The survey also showed a steady uptick in consumers' willingness to increase spending, with corresponding index advancing 1.3 points to 45.7 in December, hitting a seven-year high. This data confirms earlier forecasts that private spending will increase by almost 1% in real terms this year, providing additional boost for Europe's largest economy. Another welcoming sign is that after falling for the last three months, a measure of income expectations shot up to 45.2, reaching a 12-year high.
Also Wednesday German Chancellor Angela Merkel reached a compromise with the centre-left Social Democratic Party. Merkel's Union reached a coalition agreement, paving the way to the third big coalition in the German post-war history and suggesting Merkel's third term in her position will be less challenging. However, the agreement still has to be ratified by SPD members, as almost 500,000 members are planning to vote on the party's participation in German government in December 17.
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