Euro-zone Economic Sentiment Declines More than Forecast - 30.7.2012

The Euro area Economic Sentiment Indicator dropped for the fifth consecutive month to 87.9 in July from 89.9 in June according to the European Commission. Economists were expecting the euro area Economic Sentiment to drop to 88.9 however the release was worse. Moreover, the Business Climate Indicator kept its downward move and fell to -1.27 in July for the euro area from -0.94 the previous month. At the same time the euro area Consumer Confidence drop from -19.8 in June to -21.6 in July as worsening European outlook spreads fear among consumers. The common currency is losing ground today against the greenback, the EURUSD fell from 1.2308 to 1.2252 losing more than 0.40% since the new week’s open. However in the last 30 minutes the euro bounced up supported by advancing European stocks, it was lastly seen at 1.2284.