Euro-Zone Economic Sentiment Slightly Higher Post-Brexit
- The Euro was little changed versus the US Dollar
- Eurozone economic sentiment prints 104.6 vs 103.6 expected
- Confidence figures join July PMIs signalling resilience in the Euro-Zone in the wake of the Brexit referendum
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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 better than expected.
The Economic Sentiment Indicator edged slightly higher to to 104.6, above the expected 103.6 figure, and the prior reading of 104.4. The index is compiled from five different indicator surveys including: industrial, services, consumer, retail, and construction.
The report said the generally flat euro-area sentiment reading resulted from a drop in the consumer confidence indicator which was offset by increases in the industry, retail trade and construction sectors.
Sentiment in the services sector rose to 11.1 in July from the prior revised 10.9 print, and was above expectations.
Measures for industrial confidence improved to -2.4, which was above expectations for a -3.3 print. The report said the improvement resulted from managers' more optimistic assessment of the current level of overall order books.
Interestingly, the headline indicator for the EU dropped by -0.9 points mainly due to the marked deterioration of sentiment in the UK (-4.4 drop).
It seems this latest report is in line with the latest PMI readings suggesting that early indications are showing the Euro-Zone remained resilient post Brexit, while outlook seems to be deteriorating in the UK.
The DailyFX Speculative Sentiment Index (SSI) is showing that about 40.4% of traders are long the EUR/USD. You can find more info about the DailyFX SSI indicator here.
EUR/USD 5-Minute Chart: July 28, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.