Sentiment on the euro is under pressure after Putin’s refusal to accept the European currency for gas exports, while the British pound is attracting investor interest at the expense of the euro and the dollar. This is what emerges from the data SERIX, the sentiment of European individual investors, referring to the month of March. The data, published by Spectrum Marketstherefore show a bearish sentiment towards the euro, in particular against the pound and the yen.
“The war in Ukraine has understandably impacted individual investors, who took significantly bearish positions on the euro last month. The announcement on March 24, in which President Putin said that Russia would not accept the payment in euros for gas exports, further increased the pressure on the European currency, which is already weighing on an ever-increasing rate of inflation. tall. SERIX on most euro-linked currency pairs went well below the neutral value of 100, dropping to 92 against the yen and a record low of 76 against the pound, “he explains. Michael Hall, Head of Distribution di Spectrum Markets.
Eurozone inflation has been fueled in recent weeks byincrease in energy and food prices, which rose dramatically after the invasion of Ukraine. The rate already hit a record 5.9% in February, well above the European Central Bank’s 2% target, and most economists expect further hikes. Uncertainty about the likely direction and strength of the ECB policy response this scenario remains a key factor in investor thinking.
Sentiment apparently more favorable on the British pound, even against the US dollar, with SERIX maintaining the bullish momentum seen this year and reaching 103. This could be seen as an act of confidence for the US dollar.attention that the Bank of England is paying in addressing inflation, anticipating further targeted monetary policy tightening. In addition to this, it should be considered that the services sector, economically important for Great Britain, is less affected by the increase in energy prices.
120.5 million certificates changed hands in March
In March, 120.5 million certificates were traded on Spectrum Markets, with the 35.6% of exchanges made outside traditional hours (i.e. between 17:30 and 9:00). 86.1% of the certificates traded were on indices, 3.6% on currency pairs, 8.5% on commodities and 1.8% on equities, with the top three underlying markets trading : DAX 40 (27.1%), S&P 500 (18.9%) and OMX 30 (14.9%).
Looking at the SERIX data for i three main underlying marketsthe DAX 40 held its value at 100, the OMX 30 fell to 99 and the S&P 500 to 98, remaining in the bearish zone.