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Euro Latest: Eurozone Sentiment Crashes to All-Time Low, EUR/USD Unfazed

Euro Latest: Eurozone Sentiment Crashes to All-Time Low, EUR/USD Unfazed

Justin McQueen, Strategist

Euro Analysis & News

  • Eurozone Sentix Crashes to All-Time Low
  • Euro Unfazed by Sentiment Survey
  • Focus on Eurogroup Meeting

Recap: The latest Eurozone Sentix Investor Confidence survey showed that the index crashed to an all-time low of -42.9, dropping below expectations of -37.5 as the Eurozone faces a sharp recession amid the impact of the coronavirus. The Sentix Managing Director noted that the situation is much worse than in 2009, adding that the recession will go much deeper and longer. On a country-specific basis, the sentiment index for Germany dropped to -36 from -16.9, marking its worst level since March 2009.

Figure 1. Eurozone Sentix at an All-Time Low

Euro Latest: Eurozone Sentiment Crashes to All-Time Low, EUR/USD Unfazed

Reaction: That said, while the Sentix index had plunged to an all-time low, the Euro is somewhat unfazed with the currency dipping marginally on the release, given that such a weak figure had been largely expected.

What to Watch: As we look ahead, eyes will be on tomorrows Eurogroup meeting, where Europe will look to achieve a compromise on a stimulus package to combat coronavirus. While the likes of Germany have thus far rejected proposals on corona-bonds, they may opt for an increase in funding via the ESM and the EIB.

EUR/USD Price Chart: Daily Time Frame

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Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

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