Forex News: German Investor Expectations for the Euro-Zone Turn Optimistic
THE TAKEAWAY: Euro-zone Sentix investor confidence index rises to -7.0, better than expected -> Index may be testament to Euro leaders’ efforts -> Euro trading unchanged
The Euro-zone Sentix Investor Confidence Indicator was reported negative for the seventeenth straight month; however, the indicator was reported at the highest level over that negative period. German investors’ optimism for the Euro-zone was reported at -7.0 in January, higher than an expected -14.2 and better than last month’s -16.8 indicator.
Sentix reported that the current situation survey rose to -24.3, while the expectations survey showed a rise to positive expectations at 12.0.
The rise in German investors’ expectations may be a testament to the success of recent measures by Euro-zone leaders to pull the area out of the troubling debt crisis; such measures included awarding a bailout to Greece in exchange for austerity measures and the ECB promising unlimited bond purchases if needed. However, the ECB still predicts that the Euro-zone will only begin to stabilize well into 2013.
The Euro did not significantly react to the improved investors’ sentiment. The single currency has dropped slightly against the US Dollar since the week’s open in Forex markets. EURUSD is currently trading around 1.3025, and may see support by the key 1.3000 line. Resistance could be provided by a line around 1.3158, which has provided some resistance over the past few months.
EURUSD Daily: January 7, 2013
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