According to the April survey,
- The willingness to save limited the upside in the headline indicator, rising by 2.5 points to 14.9 points. In April 2023, the willingness to save stood at 1.8 points.
- Income expectations advanced by 12.2 points to 10.7 points, the highest level since January 2022 (16.9 points).
- The willingness to buy increased by 2.7 points to -12.6. Nevertheless, the willingness to buy remained low, highlighting ongoing uncertainty about the labor market and the economy.
- Economic expectations rose by 3.8 points to 0.7 points. Year-on-year, economic expectations were down 13.6 points.
Consumer Confidence and June ECB Rate Cut Puts
The sub-components of the survey supported investor expectations of a June ECB rate cut. Despite the jump in income expectations, consumer plans to save signaled a lackluster demand environment. Downward trends in consumer spending could dampen demand-driven inflation and support multiple ECB rate cuts.
EUR/USD Reaction to German GfK Consumer Climate Survey
Before the release of the German GfK Consumer Climate survey, the EUR/USD fell to a low of $1.06916 before rising to a high of $1.07130.
In response to the GfK Consumer Confidence numbers, the EUR/USD fell to a low of $1.07114 before rising to a high of $1.07131.
On Thursday, April 25, the EUR/USD was up 0.13% to $1.07122.