Talking Points:
- The Euro was little changed versus the US Dollar
- Eurozone economic sentiment prints 104.4 vs 104.7 expected
- After two consecutive months of improved readings, Economic Sentiment remained broadly unchanged
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The Euro was little changed versus the US Dollar (at the time this report was written) after today's Eurozone economic confidence figures came slightly below expectations.
The Economic Sentiment Indicator edged lower to 104.4, below the expected 104.7 figure, and the revised prior reading of 104.6. The index is compiled from five different indicator surveys including: industrial, services, consumer, retail, and construction.
The report said the flat euro-area sentiment reading resulted from increasing confidence in industry, which offset drops in services and construction and, in particular, retail trade.
Sentiment in the services sector decreased to 10.8 in June from the prior revised 11.3, and was slightly below expectations.
Measures for industrial confidence improved to -2.8, which was above expectations for a -3.4 print. The report said the positive assessments resulted from managers' more optimistic production expectations and a better assessments of the current level of overall order books.
As the report explicitly mentioned, all survey results reported were collected before the announcement of the results of the UK referendum and the “Brexit” decision. It remains to be seen what will be the next reading after the perceived game changing implications of the vote. As such, the Euro was unchanged on the news, and continues to trade in a range post Brexit.
The DailyFX Speculative Sentiment Index (SSI) is showing that about 47.15% of traders are long the EUR/USD. You can find more info about the DailyFX SSI indicator here.
EUR/USD 5-Minute Chart: June 29, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
