The Euro declined against the greenback following the release of worse-than-anticipated Sentix investor confidence index data for October. The upbeat US non-farm payroll data released on Friday has increased expectations of another sharp rate hike by the Fed in the next meeting. This continues to keep the US dollar extremely bullish against all other major currencies.
The greenback is also strengthened by the ongoing Ukraine-Russian conflict and weak global economic outlook. There were no other major economic releases yesterday. Overall, the EUR/USD pair declined from a high of 0.9749 to a low of 0.9680 in the past 24 hours.
The Eurozone Sentix investor confidence index worsened to -38.30 in October, from -31.80 in the prior month. The reported reading was worse than forecasts of -34.90. Also, the current situation index declined to -35.50, from -26.50. Likewise, the expectations index fell to -41, from -37.
Germany was no exception. The powerhouse of Europe saw the Sentix investor confidence index drop to -37.40 in October, from -29.90 in the earlier month. Also, the current situation index fell to -33.50, from -23.50. The expectations index plunged to -41.30, from -36.
In the case of Japan, the Sentix investor confidence index plummeted to -16.6 in October, from -13.20 in September. The current situation index dropped to -10.50, from -6.5. Also, the expectations index worsened to -22.50, from -19.80.
In the US, Sentix investor confidence declined to -12.60, from -10.80. The current situation index fell to -0.30 and entered negative territory, from 1.80 in September. The expectations index decreased to -24.30, from -22.50.
Overall, the global Sentix investor confidence index worsened to -20.30, from -18.70. The current situation index declined to -16.6, from -13.6. Eventually, the expectations index fell to -23.90, from -23.70.
The weak Sentix investor confidence data is expected to keep the EUR/USD pair range-bound with a bearish bias in the next few trading sessions.
The historical price chart indicates that the EUR/USD pair is declining after facing resistance at 0.9840. The next major support is anticipated only near 0.9590. Additionally, the currency pair is trading below its 50-day moving average while the stochastics indicator is in the bearish zone. Therefore, we anticipate the EUR/USD pair to remain in a downtrend in the days ahead.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
