Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro-Zone Investor Confidence Rises Ahead of ECB Meeting, Euro Firms

Euro-Zone Investor Confidence Rises Ahead of ECB Meeting, Euro Firms

Martin Essex, MSTA,

Talking Points

- Sentix index rises to 28.2, beating expectations of a fall to 27.0 from the previous 27.7.

- The figures are among the latest ahead of this Thursday’s European Central Bank policy meeting.

Check out our Trading Guides: they’re free and have been updated, with several new ones now available including Forex for Beginners, Building Confidence and Traits of Successful Traders

Sentiment among investors in the Euro-Zone has improved according to the latest Sentix investor confidence index, which is based on a survey of more than 900 professional investors and financial analysts by the German market research firm.

The indicator is one of the last ahead of Thursday’s monetary-policy announcement by the European Central Bank, which will be watched carefully for any hints that the ECB is planning to reduce its monetary stimulus for the Euro-Zone economy either in the form of higher interest rates or, far more likely, a reduction in its €60 billion per month asset-purchase program.

However, the announcement of a so-called “tapering” of the program is increasingly seen as more likely after the October 26 or even the December 14 meetings of the central bank’s Governing Council, paving the way for action early in the new year. The ECB has made it clear that the strength of the Euro is a concern as that has already tightened monetary policy indirectly, pushing a tapering of the bond-buying program further into the future.

The Sentix index rose to 28.2 in September from 27.7 in August when a fall to 27.0 had been predicted. In response, the Euro firmed moderately, moving closer to the psychologically important 1.20 level that was breached briefly last week.

Chart: EUR/USD Five-Minute Timeframe (September 4, 2017)

Chart by IG

The economic indices for the Euro-Zone signal stability in September, Sentix commented, adding that both the current situation and expectations indices showed little change from the previous month.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

Do join me for my weekly Trading Sentiment webinar today at 1000 GMT. You can sign up here

For help to trade profitably, check out the IG Client Sentiment data

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES