Euro-Zone Investor Confidence Rebounds Following Draghi's Bond Plan
THE TAKEAWAY: Sentix investor confidence survey reported at -23.3, beats expectations -> Confidence rebounds following Draghi’s bond plan -> Euro trading steady
Following 5 months of decline, investors’ confidence in the Euro-zone has bounced back from a 3-year low and beat expectations according to Sentix. The Sentix Investor Confidence Survey for September was reported at -23.3, higher than expectations for -30.5.
The survey for the current situation was reported at -34.8, the expectations survey was reported at -10.8, and both were improved from the previous month. The survey result is the difference between positive and negative response among investors questioned.
Sentix attributes the higher consumer confidence to ECB President Draghi’s bond purchasing plan, which was announced last Thursday. Euro traders have now turned their attention to the German court’s ruling about the ESM permanent bailout fund, set for Tuesday, and the Troika meeting with Greek officials, starting today.
The Euro did not significantly react to the better than expected Sentix survey. EURUSD has been trading around 1.2800 since Friday’s rally; the key figure could provide resistance from here. Support could be provided near 1.2750, by the previous 2.5-month high.
EURUSD 15-minute: September 10, 2012
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