EUR/USD Elevated as Single-Bloc Sentiment Remains Strong
- The single currency remains within touching distance of highs seen in May 2016.
.The Euro-Zone Sentix Investor Confidence indicator for July beat market expectations and fell back by just 0.1 from June‘s decade high. Today’s print of 28.3 beat expectations of 28.1 and nudged back from June’s 28.4. The indicator has risen sharply this year having ended December 2016 at 10. However, according to Sentix, the situation may not get any better. According to the release,
“The sentix economic indices show different trends for the different countries and regions. While Euroland and Eastern Europe stand out due to their better situation indices, the US is still characterized by a slowdown. Overall, it is striking that the economic expectations have weakened slightly. The economic momentum may thus be a top line. Better, as it indicates the very good situation index values, it will probably not be for the time being.”
EURUSD remain above the 1.14000 level and stays close to levels last seen in May 2016. Recent hard data has highlighted strong growth in the single-bloc, especially in Germany and France, while talk that the ECB will soon start withdrawing some if its stimulus, or at least tighten financing conditions, has provided the EUR with a sustained uplift since May this year.
Chart: EURUSD Weekly Timeframe (August 10, 2015 – July 10, 2017)
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--- Written by Nick Cawley, Analyst
To contact Nick, email him at email@example.com
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