Eurozone Sentix Investor Confidence drops to 22.2 in August, a big miss

Dhwani Mehta FXStreet

Eurozone’s investor sentiment snapped its uptrend and dropped more than expected in August, the latest data published by the Sentix research group showed on Monday.

The gauge dropped to 22.2 in August from 29.8 in July vs. a reading of 29.0 expected. The index ended its fifth straight month of upbeat momentum.

The Sentix current conditions index rose to its highest level since October 2018.

In Euroland, expectations fell for the third consecutive month in August.

Sentix Managing Director, Patrick Hussy, said: "The eurozone economy is booming, but the pace is slowing noticeably.”

"What is true for the eurozone is also visible for the German economy ... Fears are growing that new lockdowns could loom from autumn onwards with rising infection figures, and could once again weigh on the economy,” he added.

EUR/USD reaction

The shared currency ignores downbeat Eurozone Sentix data, as EUR/USD keeps its range around 1.1760 amid firmer US dollar. The spot is almost unchanged on the day.

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 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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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