The level of personal income in the eurozone increased later last year as opposed to the first 2 quarters of 2013. The latest report indicates just that. At the same time January's construction report indicates higher figures for the second consecutive month.
These and some other economic figures lead us to believe that the eurozone economy may be finally recovering from the prolonged recession. At least, there are some positive tendencies in the economy. The pace of income growth outpaced the pace of consumer inflation in Q4 2013. This indicates that European households are finally improving their wellbeing as some negative tendencies are disappearing gradually.
Inflation decline within the framework of the ECB
Salary hikes are probably good news for the ECB. In 2013, the inflation rate declined from 0,8% down to 0,7%. Apparently, the inflation rate keps staying below the 2% target set by the European Central Bank. According to Eurostat, the average income in the eurozone (18 countries) increased by 1,9% in Q4 2013.
Meanwhile, the common European currency keeps declining against the US Dollar. According to Masterforex-V Academy, this is a mid-term retracement within the scope of a long-term rally recently seen in the market of EURUSD. At this point, the price is fluctuating around 1,3764. If there is a further decline, the price may find support at 1.3708 and the bottom of the MF sloping channel.
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