Eurozone Consumer Confidence Deteriorates in March

The flash estimate of March Eurozone Consumer Confidence dropped to two year low at -18.7 in March from -8.8 the month prior, data from the European Commission on Wednesday showed. That was much steeper than the expected drop to -12.9 and marked the worst such reading since May 2020.

While the data alludes to a larger than expected know to public confidence in the Eurozone as a result of the Ukraine war and its economic impact, the euro has not reacted, with EUR/USD continuing to trade slightly to the south of the 1.1000 level.

The Consumer Confidence released by the European Commission is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. A high reading is seen as positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).