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Fundamental Major Currencies
Written by article default Wednesday, 29 June 2011 08:32
EU Business Climate Indicator for June
| Previous | 0.99 |
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| Forecast | 0.90 |
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| Definition |
The business climate indicator is based on a questionnaire that is distributed to the industrial sector representatives in addition to the services, retail and construction in various European economies, this way the results are diversified, which gives a clear picture of this sector. Also, this indicator is considered to be one of the main confidential data that evaluates and anticipates the performance of businesses in the Euro Zone. |
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| General Effect |
This reading monitors the changes in the European economy, and based on that this indicator warns markets on the Central Bank’s movements in periods to come, this indicator also gives an insight that explains the economical situation in the zone. A rising reading means that the economy is expanding, which is favorable to the Euro, but if the reading retreats then this means that confidence in the economy is weakening into unfavorable levels. |
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| Best Case Scenario | The best scenario for the indicator is to rise above expectations which means that the economy in the Euro zone continued to expand in June, supporting business confidence offsetting the deepening debt crisis |
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| Worst Case Scenario | The worst scenario for this indicator is to fall below expectations, which reflects a weakening confidence in the economy and slowing growth with the debt crisis and global slowing recovery indeed starting to pressure growth prospects in the area |