Eurozone consumer confidence declines to -11.6 in March

Eurostat released its monthly report on Eurozone consumer confidence on Monday. The data showed a 5.0 points decline in the Eurozone consumer confidence in March. Consumer confidence came at -11.6 in March as compared to -6.6 that was recorded in February.

Economists had expected a sharper decline to -14.2 in consumer confidence in March. The broader indicator of consumer sentiment that covers the entire European Union, on the other hand, dropped by 4.5 points in March to record at -10.4.

European Commission Says Data Collection Was Abrupted Due To COVID-19

According to the European Commission’s statement on Monday, the COVID-19 situation had pushed an abrupt pause in data collection as countries resorted to lockdowns and strict measures to minimize the transmission of the fast-spreading flu-like virus. The Commission said that responses from only around 15% of the consumers could be collected.

The incomplete data hints at the possibility that the actual figure may as well be far worse than reported. In the subsequent months, as the Coronavirus crisis reflects broadly in the economic data, the figure is likely to post a sharp downturn.

The World Health Organization (WHO) recently branded Europe as the epicenter of Coronavirus with the rate of transmission much faster than in China at its peak. The health emergency has pushed multiple economies like Italy, France, and Spain into a countrywide lockdown and sabotaged the global business operations. The United Kingdom also declared a countrywide lockdown on Monday and called in the army to ensure public compliance.

All in all, the Coronavirus pandemic continues to push the global economy a step closer to recession. According to the Bank of England’s former governor, Mervyn King, the Coronavirus threat is much bigger for the UK’s economy than the market crash of 2008.

Goldman Sachs Predicts A 1.0% Decline In Global GDP In 2020

America’s leading investment banking firm, Goldman Sachs, also estimated a 1% decline in global GDP in 2020 that could get far worse if the pandemic gets any worse.

Following the release of the Eurozone consumer confidence index, the EUR/USD was seen losing traction in the forex market. The pair dropped from a daily high of 1.0825 to a low of 1.0723. At the time of writing, it is exchanging hands at 1.0760.

According to the technical analysts, EUR/USD is likely to find a short-term resistance around 1.0830 level. Breaking above the resistance will open way for 1.09. On the downside, the pair is created support at 1.0660, below which, further decline to 1.06 is expected.