Eurozone Sentiment Misses Forecasts, EUR Shrugs
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EUR price, news and analysis:
- Sentiment in the Eurozone was weaker than expected in January but that has had little effect on the Euro.
- EURUSD will likely be driven in future by moves in the US Dollar, which faces an FOMC meeting and US-China trade talks.
Eurozone sentiment deteriorates
Various measures of sentiment in the Eurozone in January have come in mostly lower than in December and below analysts’ forecasts:
- The business climate index in January was 0.69, down from 0.86 in January and below the predicted 0.75,
- Economic sentiment fell to 106.2 from 107.4 and below the forecast 106.8,
- Industrial sentiment dropped to 0.5 from 2.3, in line with expectations,
- Services sentiment slipped to 11.0 from 12.2, just under the 11.1 forecast,
- Consumer confidence was unchanged at -7.9.
However, the data had little impact on EURUSD, which will likely be driven in coming days principally by progress – or lack of it – in the latest US-China trade talks that begin Wednesday. Traders will also be watching the latest meeting of the US Federal Open Market Committee this session.
It is expected to leave US interest rates unchanged but the progress of EURUSD will depend on just how dovish the FOMC proves to be.
EURUSD Price Chart, Five-Minute Timeframe (January 30, 2019)
Chart by IG (You can click on it for a larger image)
Earlier Wednesday, the GfK measure of consumer sentiment in Germany in February surprised to the upside, rising to 10.8 from 10.4. A dip to 10.3 had been predicted.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.