Euro (EUR) Exchange Rate: Investor Confidence Jumps to 34-Month High
The Euro edged higher against a number of its most traded peers on Monday following the release of a report which bolstered optimism that the Eurozone economy is recovering.
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According to the Sentix investor confidence report for February optimism amongst investors climbed from the 11.9 reading seen in January to 13.3 this month. The figure took economists by surprise as they had been expecting the data to show a decline in confidence to 10.7.
Key events for the week ahead
Eurozone Industrial Production (February 8)
ECB President Speech (February 8)
European Council Meeting (February 9)
Euro GDP Data (February 10)
Any figure above 0.0 indicates optimism whilst one below indicates pessimism.
The data allowed investors to broadly ignore other reports which painted a mixed picture of the region’s economy. Both Finland and Italy posted disappointing industrial production data with the latter’s showing a sharp decline of 9%. On a brighter note, France posted better than expected year-on-year data.
Other positive news for the Eurozone was the news that the region’s car industry was expecting to make its first year of expansion since 2007. Last year sales declined to their lowest level since 1995. The industry’s expansion is said to be the result of increased domestic demand suggesting that Europeans have more cash in their pockets.
The Euro could make further gains midweek if industrial production data for the wider Eurozone comes in positively. Most attention is focused on the end of the week when the latest flash GDP report is due for release. Economist expect the report to show that the Euro region’s economy expanded by 0.3%.