US consumer Confidence still looks at a relatively high level
US consumer confidence dropped back from a five-year high in March, The headline confidence index fell to 107.2, from a revised 111.2, (previously 112.5). Consensus was 108.5. Conference Board’s measure is still at a relatively high level compared to the University of Michigan series, which has fallen sharply since the start of the year. German business Confidence survey, 107.7 vs 107, reinforced expectations that Euro-zone rates are heading higher. Consensus was 106.5. ECB’s Garganas said Euro-zone rates do not seem to have peaked and the ECB may need to act of upside inflation risks appear. nalysts are already looking for a hike and the market is pricing in Euro-zone rates of 4% by the end of 2007, while US rates are seen falling to 4.5%.