European investors are getting more and more pessimistic. This is confirmed by the recent report released by Sentix earlier this month. All the components of the research ended up with negative results.
The confidence index dropped all the way down to 6.0 points in February relative to January’s 9,6 points. At the same time, experts had expected a slightly less considerable decline only to 7.2 points. Hover, as we can see, the index eventually exceeded even the pessimism expressed by the expert community. They say Feb’s figures have indicated the poorest performance since April 2015.
The index indicating existing conditions also dropped. It was a move from 13.0 points in January all the way down to 10.5 points in February. The expectation index showed the most dramatic decline by crashing from 6.5 points in January all the way down to just 1.5 points in February. The index has never been that low since November 2014.
It seems like investors are getting more and more disappointed with the ECB’s existing monetary policy since they don’t see it as an efficient solution capable of dragging the Eurozone economy out of the growing recession we can see now.
FOREX
In the meantime, Masterforex-V Academy reports that despite the negative dynamics mentioned above, the common European currency is still trying to regain some of the recently lost ground against the U.S. Dollar. Still, this is not a bull market. It is just an attempt to recover from a little bit from the long-term downtrend as the bears have take a timeout.
EURUSD is now developing a bullish move – wave A/B of level Weekly, the experts say. At the moment the overview is being written, the price is moving within the scope of a junior wave – wave 3/C inside the bigger bullish wave. The key levels of resistance are located at 1.1494, 1.1713. The current bullish move will be completed as soon as the price breaks below the bottom of the ascending MF sloping channel and pivot 1.0809.
