Sentix Euro-Zone Figure at Six Month High as Expectations Soar
- Sentix Investor Confidence Index rose to +9.9 from the prior +6.2, above expectations
- Report says economic expectations soared in June
- Sentix comment that the ECBs passive approach may have helped confidence
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Sentix Investor confidence Index gained +3.7 points in June to reach +9.9, which marked the highest reading since December. The index rose above the May reading of +6.2, and was above economists’ expectations for a rise to +7.0. The survey showed that the “Expectations” value soared by +5.5 points to a +10.0 print. The “Current Situation” value rose to +9.8 from the prior +7.0. Combined, this led to the overall rise in the index.
The Sentix Investor Confidence Index rates the six-month economic outlook for the Euro-Zone, surveyed from registered investors and analysts. A reading above zero indicates optimism, while a reading below zero indicates pessimism.
Looking into the report, Sentix said that the latest figures raise hope that the downtrend that has been prevailing since last year, has finally halted. Interestingly, the report said that the ECB’s more passive approach to recent economic figures could have boosted confidence among the investment community.
The DailyFX Speculative Sentiment Index (SSI) is showing that about 40.2% of traders are long the EUR/USD at the time of writing. The SSI is mainly used as a contrarian indicator, implying further strength ahead for the EUR/USD.
You can find more info about the DailyFX SSI indicator here.
EUR/USD 5-Minute Chart: June 6, 2016
--- Written by Oded Shimoni, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.