European Investor Sentiment Unexpectedly Falls As Recovery Outlook Dims

Fundamental Headlines

• China’s Exports Signal Recovery – Wall Street Journal
• EU Finance Minister Aim To Cut Risk – Wall Street Journal
• Judge approves plan to sell GM assets – Financial Times
• Earnings Drop Worldwide as Job Losses Hurt Consumers – Bloomberg
• Biggest VIX Drop Hides Options Bets S&P 500 Will Fall Hiring – Bloomberg

EURUSD – The European Sentix investor confidence indicator unexpectedly fell to -31.3 from -27 as the outlook for a robust recovery has started to dim. Concerns are growing that the level of global unemployment will make any rebound formidable and the possibility of a double dip recession is still alive. The ECB left rates unchanged and failed to add to their quantitative easing measures, but left the door open for further easing.?? Discuss the topic and your trade ideas in the EUR/USD Forum.

USDJPY – The leading index for Japan in May to 77.0 from 76.2 raising hope that the economy is stabilizing. The rise in the Coincident to 86.9 from 86.0 signals that current conditions are improving. Indeed, the BoJ in their Shakura report raised their outlook for the region for the first time in three years. An increase in exports is helping generate growth for the economy. The expected increase in Chinese domestic growth from the stimulus efforts of the government should fuel demand for Japanese products and spur activity ion the region. Discuss the topic and your trade ideas in the USD/JPY Forum.