THE TAKEAWAY: Sentix Investor Confidence reported at -16.8 in December, better than expected -> Investor confidence at an eight month high -> Euro trading unchanged
European investor confidence is at the highest level in eight months according to a Sentix survey. Sentix Investor Confidence for December was reported at -16.8, both beating expectations for 16.9 and higher than last month’s -18.8 confidence survey. The current situation survey was slightly higher than November at -31.0 and the survey for expectations rose from -5.5 to -1.5.
Although the survey has been negative since July of 2011, the improving investor confidence is a good sign for the Euro. However, despite the improved survey, European Central Bank head Draghi said on Thursday that the bank is now expecting growth to range somewhere between -0.9% and +0.3% in 2013, showing high expectations for further economic contraction.
The Euro did not significantly react to the better than expected confidence survey. EURUSD is trading slightly higher in today’s forex markets after opening lower than Friday’s close, following the weekend news of Italy PM Monti’s resignation. The pair is currently trading right around 1.2900, and resistance could be provided by the key 1.3000 level.
EURUSD Daily: December 10, 2012