Euro steady after Sentix investor confidence index fell to a 3-year low today, but at least the numbers were better than expected. Turmoil in the euro zone continues to weigh on economic sentiment as European leaders have yet to reach an agreement on how to solve the debt crisis.
June’s Sentix investor confidence printed the lowest number since May 2009, coming in at minus 28.9, although this was higher than the expected drop to minus 30.0. This is the fourth straight month of decline since March, when the index reached minus 8.2, the highest in six months at that time.
Uncertainty over the debt situation in the euro zone was heightened by the recent Spanish banking crisis, as well as the Greek political situation and upcoming election on the 17th of June. EU leaders continue to disagree on measures to tackle the crisis. Some are pushing for jointly issued euro bonds but German Chancellor Angela Merkel said that she would not agree to joint debt issuance under any circumstances.
EURUSD did not react substantially after the confidence data this morning. The better than expected result helped.