Sentiment across the Eurozone has increased for a fourth consecutive month after the region was boosted by a rise in expectations, rising to their strongest levels since May 2011.
Investors have become more optimistic since the European Central Bank and regional politicians vowed to ensure the single currency’s survival. The Sentix research group that carried out the survey said that its index tracking sentiment had risen to minus 16.8 in December, up from the minus 18.8 figure posted in November. The figure was not as good as economists had been predicting, who expected the figure to rise to -16.
It has taken private investors time to recognise that the ECB’s clear pledge on an “irreversible” Euro which has led to a turn around,” Sentix said. “All doubts are by no means overcome, but there are increasing signs that some things are improving.”
The big cause of the sentiment rise was the expectation that the ECB’s measures announced in the summer would lead to an eventual turnaround in the struggling region. Investor hopes were matched somewhat when the ECB and IMF finally agreed to keep Greece afloat and in the Eurozone by reducing its debt burden and promising official debt relief later next year. A move that many hope will remove the risk of any further financial shocks emerging from the country.
Sentiment seems to be improving across the world with a separate index for Germany showed sentiment rising to 13.0 in December from 9.4 last month. An index for investor sentiment in the United States rose to 7.1 from 5.0, one for Asia excluding Japan rose to 26.3 from 21.9, and an index for Japan rose to minus 4.3 from minus 11.7.
The Pound to Euro exchange rate is currently trading at 1.2395
The Pound to US Dollar exchange rate is currently trading at 1.6082
The Pound to Australian Dollar exchange rate is currently trading at 1.5335
The Euro to US Dollar exchange rate is currently trading at 1.2970
The Euro to Pound exchange rate is currently trading at 0.8065
These Exchange rates are provided by TorFX, a leading foreign exchange broker, providing unbeatable exchange rates for all your currency needs.
