Eurozone Feb Sentix Investor Confidence beats estimates with 5.2, EUR/USD uninspired
|Investor confidence in the Eurozone deteriorated in February amid growing China coronavirus concerns and deepening German manufacturing recession, the latest data published by the Sentix research group showed on Monday.
The gauge dropped to 5.2 in February from 7.6 in January and against a reading of 4.0 expected. Last month, the investors’ morale had hit the highest since November 2018.
Sentix Chief Manfred Huebner said: "The outbreak of the coronavirus and the subsequent drastic measures taken by the Chinese government cast a shadow over the economic outlook. Fortunately, so far the effect is limited."
" However, in view of the significant declines in Chinese economic data, it is clear that the negative effect is likely to be much greater if it does not become apparent in the coming days that the spread of the virus has been taken away," Huebner added.
About Eurozone Sentix Investor Confidence
Among 1600 financial analysts and institutional investors, the Sentix Investor Confidence is a monthly survey that shows the market opinion about the current economic situation and the expectations for the next semester. The index, released by the Sentix GmbH, is composed by 36 different indicators. Usually, a higher reading is seen as positive for the Eurozone, which means positive, or bullish, for the Euro, While a lower number is seen negative or bearish for the unique currency.
FX Implications
The shared currency clung to small gains on the Eurozone Sentix data, as EUR/USD flirted with a four-month low of 1.0942 reached earlier on Monday. Broad-based US dollar strength on coronavirus concerns and strong US fundamentals remains a weight on EUR/USD.
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