THE TAKEAWAY: Euro-zone economic sentiment rises to 85.7 in November -> Sentiment rebounds from a 3-year low -> Euro trading unchanged
Euro-zone economic sentiment has rebounded from a 3-year low according to an indicator released today. The Economic Sentiment Indicator was released at 85.7 in November, better than expectations for 84.5 and higher than last month’s 84.3 revised indicator. The Euro-zone consumer confidence indicator was confirmed at -26.9 in November, following a preliminary estimate by the European Commission.
The EC’s business climate indicator for the Eurozone was released at -1.19 following last month’s revised -1.61 indicator.
The Euro-zone recently slipped into a technical recession when it reported two straight quarters of negative GDP growth. The bounce in economic sentiment could be a signal of an upcoming rebound in Euro-zone GDP, although many debt crisis related factors still weigh on growth in the region.
The Euro did not react to the better than expected economic sentiment indicator, EURUSD continues to trade slightly below the 1.3000 line following a slow rise over the course of the European session. The pair might find resistance by the key 1.3000 level, and support could be provided by the previous support around 1.2824.
EURUSD 15-minute: November 29, 2012