• Eurozone investors’ morale deteriorated in September amid German economic woes.
• EUR/USD pares back gains below 1.1000 on the downbeat Eurozone data.

The Eurozone Sentix Investor Confidence Index fell to -21.5 in September from -18.9 in August.

The Expectations Index in the Eurozone also dropped to -21.0 points, from -17.3 in the previous month.

The Current Situation Index declined to -22.0 points, its lowest level since November 2022.

Commenting on the survey's findings, Sentix Managing Director Manfred Huebner said that "the situation in Germany remains particularly precarious. Here we are measuring the weakest situation ... since July 2020, when the economy was slowed by the first coronavirus lockdown.”

"Germany is also weighing heavily on the economy in the Eurozone as a whole ... The tipping point of a global recession is less distant than one might think,” Huebner said.

Market reaction

EUR/USD is paring back gains below 1.0800 in response to the downbeat Eurozone data. As of writing, the EUR/USD pair is trading at 1.0790, up 0.17% on the day.