EUR/USD Supported as Eurozone Sentix Confidence Beats Expectations

EUR/USD received a modest lift on Monday after the Eurozone Sentix investor confidence index for June came in at -13.4, beating the expected -14.6 and improving from the prior reading of -16.4. The better-than-anticipated data suggests that fears of a deep economic slowdown in the euro area are easing, though sentiment remains firmly in negative territory, indicating persistent headwinds for the bloc's economy. The improvement reflects a gradual stabilization in investor morale rather than a decisive shift toward optimism. From a fundamental perspective, the ECB's monetary policy stance remains a key driver for EUR/USD, with traders monitoring upcoming inflation and growth data for clues on future rate decisions. While the sentiment beat provides marginal support for the euro, the still-negative reading limits upside potential. Traders should watch for confirmation from harder economic data releases this week. Near-term, EUR/USD is likely to remain range-bound as markets weigh improving confidence against the broader backdrop of subdued economic activity across the eurozone.