German Economy Weakness Impacts Euro Zone: Sentix Report

Summary

  • Sentix has singled out Germany, the most significant economy in the Euro Zone, as an area of concern due to its falling sentiment.
  • “This is not a reversal for the Euro Zone” according to Sentix, citing Germany’s struggle with its ongoing recession and crisis.
  • The expectation index for the Euro Zone saw an uptick, with it reaching -8.8 points from -9.8 points in December.
  • Similarly, the Euro Zone’s current situation index noted a rise to -22.5 in January, marking a third back-to-back monthly increase.
  • The data was collected through a poll conducted among 1,282 investors between January 4 and 6.

Germany’s Economic Struggles

Germany, as the largest economy in the Euro Zone, is a clear area of concern due to decreasing sentiment, reports Sentix.

With the nation’s economy still in the grips of a recession, and thus crisis, Sentix reasons “this is unlikely to be a pivot point for the Euro Zone”.

Rising Indices in the Euro Zone

Euro Zone’s expectations index, however, noted improvement. From -9.8 points in December, it has risen for the fourth consecutive month to -8.8 points – the highest since the previous February. The zone’s current situation index also increased to -22.5 in January from -23.5 the month before, recording its third straight monthly increase.

The Sentix Investor Poll

Sentix drew these conclusions from a poll of 1,282 investors undertaken in the early days of 2021, between the fourth and sixth of January.

An in-depth understanding of these trends is essential for traders, as economic sentiment and Indices figures directly influence the Forex market and trading strategies. Investors should keep a keen eye on these assets.

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