The GfK consumer confidence index fell for the second consecutive month from 10.1 to a lower-than-forecast 9.8. The survey showed that confidence has been shaken by concerns that thousands of jobs could be at risk due to German carmakers being embroiled in trade tensions. This dampened sentiment in the single currency, leaving the euro flat against Sterling.
Commenting on the data, Rolf Buerkl, a researcher for GfK said: “So far, the income indicator has been able to benefit from the excellent development of the job market in Germany. But now the voices heralding the end of the employment boom are growing.”
Meanwhile, Sterling remains under pressure as the Conservative leadership contest rages on between Boris Johnson and Jeremy Hunt.
In an interview with Talk Radio, Mr Johnson reaffirmed that he would have the UK out of the European Union by October 31, “come what may do or die.”
He also challenged Mr Hunt to make the same commitment, who responded that he would leave the EU without a deal, but not if there was a “prospect of a better deal.”
Jeremy Hunt has also noted that the October 31 deadline was a “fake deadline” that could potentially trigger a general election if the House of Commons rejects a no-deal Brexit.
Looking ahead to Thursday the euro could slide against Sterling following the release of the Eurozone’s business climate indicator.
If data reveals that June’s business climate has slumped further than forecast the euro may come under additional pressure.