Eurozone Investors Have A Positive Outlook For The First Time In Two Years
The euro held above $1.32 on Tuesday morning as a US military strike in Syria became less likely. A Russian proposal for Syria to give up control of its chemical weapons to international leaders was well received by President Obama, and could deter a military strike.
The dollar was still under pressure on Tuesday after the nation's jobs data disappointed last week. Although bets are still on for a September taper, the poor jobs data raised uncertainty about the timing of the Fedral Reserve's cutback of its 85 billion per month bond buying plan.
The euro was also supported by positive investor sentiment data, which showed that investors in the eurozone were upbeat about the future for the first time in over two years. Reuters reported that Sentix research group found that the index of investors' sentiment for the eurozone climbed +6.5 points, up from -4.9 in August. The figure beat expectations of a -2.8 reading, and marks the first time eurozone investor sentiment has been positive since July 2011.
After the bloc emerged from its longest recession on record in the second quarter, investors have been positive about both their current situation and their future. Even more reassuring was data from Europe's largest economy, Germany. The nation's investor sentiment index was up to 28.5 points, a huge jump from its August reading of 20.3.
Moving forward markets will be largely dependent on the outcome of the situation in Syria as well as the Fed taper. Any developments on the US military strike will likely override economic data, however investors are still focused on US indicators that signal whether or not the US economy is ready to stand on its own without the help of the Fed's stimulus.
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