THE TAKEAWAY: Euro-zone Sentix investor confidence rises to -3.9 in February -> Index reflects ECB forecast -> Euro trading unchanged
Euro-zone investor confidence rose to the highest point in 19-months, but still remains slightly negative, according to Sentix’s index. The index was reported at -3.9 for February, lower than expectations for -1.7, but improved from January’s -7 index.
Sentix reported that the current situation survey improved to -21.8 in February from -24.3 in January, while the expectations survey rose to 15.8.
The Euro-zone experienced a technical recession over the second and third quarter in 2012, and it is unclear if there was positive economic growth in Q4. However, the ECB has predicted a recovery later in 2013, even if the economic situation worsens before improving. The Sentix survey seemed to show that, like the ECB, investors see an upcoming improvement in the Euro-zone economy. Signs of an improving economy are Euro positive.
However, the Euro did not react significantly to the slightly lower than expected Sentix confidence index. EURUSD dropped below 1.3600 in today’s Forex trading, possibly due to scandals weighing on the confidence in the Spanish and Italian governments. The broken resistance line around 1.3500 may now provide support, and resistance could now be provided by the 14-month high recently set at 1.3710.
EURUSD Daily: February 4, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .