THE TAKEAWAY: Sentix investor confidence hits 3-year low, still better than expected -> European leaders continue to disagree over crisis fighting measures -> Euro sees slight bounce before today’s trading
European investors’ optimism for the Eurozone has reached a 3-year low according to a Sentix survey. The Sentix investor confidence for June came in at -28.9, the lowest score since May 2009, but still better than analysts’ expectations for a -30.0 survey result. Back in March of this year, the survey reached a six month high at -8.2, before the survey results declined for the next four straight months.
The Sentix survey reported a 3.5 point dip in investor confidence for the current situation to -35.0, and expectations for the future also dropped over 5 points to -22.5.
Eurozone worries weighed on economic sentiment as European leaders continued to disagree before the weekend on how to solve the debt crisis. German Chancellor Angela Merkel said that she would not agree to joint debt issuance under any circumstances. US President Barak Obama joined the ECB, Italy, and France in pressuring Merkel to take further steps to control the crisis contagion.
EUR/USD didn’t move much following the better than expected investor optimism survey. After the close of a bearish month that saw a 7% decline for the euro against the dollar, the pair started June with a bounce back above 1.2400 from a fresh 2-year low below 1.2300 during Friday’s trading.