The decline in German GfK Consumer Climate raises concerns about a potential recession in Germany.

German GfK Consumer Climate:

• The German GfK Consumer Climate Index fell from -24.5 to -25.5 in September, which was slightly worse than economists' forecast of -24.3. Income expectations declined, impacted by rising food and energy prices despite softer inflation in July. This affected the propensity-to-buy indicator and buyer intentions. Pessimism towards the German economy grew due to disappointing economic indicators and rising concerns over unemployment.

EUR/USD Reaction to the German GfK Consumer Climate Survey:

• Prior to the release of the German consumer confidence numbers, the EUR/USD initially dropped to a pre-stat low of $1.08152 but later rose to a high of $1.08384. However, in response to the GfK survey, the EUR/USD briefly fell to a post-stat low of $1.08206 before recovering to a high of $1.08234. As of this morning, the EUR/USD was up 0.03% at $1.08220.

Up Next:

• While there are no other notable economic indicators in the Euro area, US economic indicators will be important to consider. The JOLTs job openings and consumer confidence figures for the US will be released later today. Economists predict a modest decline in consumer confidence and a decrease in job openings. Weaker-than-expected numbers would reduce expectations for a September Fed rate hike and shift the focus towards the ECB and the EUR. Economists forecast JOLTs job openings to decrease from 9.582 million to 9.465 million and the CB Consumer Confidence Index to slip from 117.0 to 116.0. Although there are no central bank speakers scheduled for today, media commentary could still have an influence on market sentiment.