Article By RoboForex.com
Yesterday the main currency pair could not continue its recovery, as it received a fresh blow from the European macro data.
If investors do not trust the system, it means that something is wrong with the system. Yesterday’s data from the Sentix Institute has proved it once again. Investor confidence in September was the worst in recent times: the indicator “dipped” to -9.8 points against expectations of 2 points and the previous value of 2.7 points. It is the lowest since July 2013 and, most likely, this is not the limit for the decline.
Interestingly the indicator to assess the current situation fell to -16.8 points (annual low), where the fall occurred from the level of 0.5 points. This is called “bad mood.”
Negative for the euro currency also became the comments from the representative of the ECB, Mr. Novotny, known for his attention to detail and specifics. The monetary politician earlier noted that the ABS program, from the ECB, has the aim to stimulate the market, which at the moment seems “small” and inadequate. In that process there are too many “ifs”: According to Novotny, the ABS program is better to stimulate the economy through the market, but only “if the plan will work.”
In general, the situation for the euro/dollar remains grim. Actually, there was no doubt about the fact that in the spring and summer the euro was overvalued by the market. In addition, investors are now paying more attention to the fundamental component – but such falls in the data can simply not be ignored.
Free Reports:
The target for the shorts at 1.29 is taken; the next goal for the “bears” is located at 1.2855.
RoboForex Analytical Department
Article By RoboForex.com
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