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Eurozone sentiment drops, euro holds gains

Eurozone sentiment drops, euro holds gains

Market sentiment in the euro area witnessed a significant decline for the first time in seven months in November, as the number of Coronavirus infections increased after the second wave hit the European continent, which led to deterioration in expectations regarding the economy, especially after the closure decisions.

Consumer confidence in the Eurozone fell to 17.6 in November after a previous drop of 15.5analysts had called for a decline of 17.6. 

Industrial Sector Confidence Index decreased by 10.1 from a previous low of 9.2, and expectations were for a decrease of 10.8.

As for the economic confidence index, which is the most comprehensive indicator, its reading fell to 87.6 after October's reading was 91.1, while expectations indicated a decline of 86.5.

The big decline in market sentiment came after the closure decisions that were applied in the two largest economies in the eurozone in Germany and France, especially since the statistic was conducted in the first two to three weeks of the month.

As for the euro, it managed to maintain its gains against the dollar, after hitting its highest level in three months yesterday at 1.1940, and it is currently trading at the level of 1.1922 after opening today's trading at the level of 1.1910.

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