Eurozone’s investor sentiment fell less than expected in June; the latest data published by the Sentix research group showed on Tuesday.
The gauge came in at -15.8 in June from -22.6 in May vs. -20.0 expected. The index recovered from its lowest level since June 2020, as firms were not so negatively impacted by inflation and supply chain concerns as previously expected.
A current conditions index improved to -7.3 in June from -10.5 in May and an expectations index rose to -24.0 in June from -34.0 in May.
Key takeaways
"As impressive as the improvement in the situation and expectations values may appear at first glance, this is unlikely to mark a turnaround.”
“While consumers are already suffering from rising prices, many companies have been able to pass on their sharply rising costs to their customers and benefited from people rushing to buy goods and services before price increases.”
“However, this phase looks set to finish as end consumers will have to cut back at some point, and monetary policy could become more restrictive in the eurozone from July.”
EUR/USD reaction
The shared currency shows little reaction to the improvement in the Eurozone Sentix data. EUR/USD is almost unchanged on the day, currently struggling with its recovery at 1.0695.
