Sentix Index Bounces Higher as Brexit Impact on Expectations Falls
- Sentix Investor Confidence Index rises to +4.2 from the prior +1.7, better than expected
- Report says Brexit no longer impacts Sentix Economic expectations
- EUR/USD was little changed as the report hit the wires
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Sentix Investor confidence Index rose +2.5 points in August to reach +4.2 from the July reading of +1.7, and was better than expectations for a rise to +3.0.
The survey showed that the “Expectations” value rose to +4.8 from the prior -2.0, while the “Current Situation” value fell to +3.8 from the prior +5.5.
Combined this led to the overall rise by the index.
The Sentix Index showed a sharp decline last month as investors and analysts weighed in the possible implications of the Brexit referendum on the Euro-Zone, and today's report seems to signal that after the initial scare, expectations have now stabilized.
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 Economic expectations are no longer negatively affected by the Brexit fallout. Sentix also emphasized improvements in Asia and the US.
Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 45% of traders are long the EUR/USD at the time of writing. The SSI is mainly used as a contrarian indicator, implying possible strength ahead for the EUR/USD.
You can find more info about the DailyFX SSI indicator here.
EUR/USD 5-Minute Chart: August 8, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@DailyFX.com
Follow him on Twitter at @OdedShimoni
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.