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Takeaway: With confidence heading lower for the sixth consecutive month, not even Draghi's "unlimited" buying power is enough to boost EU morale.

As fall kicks into high gear, tensions in the Eurozone have grown thick as both economic sentiment and consumer confidence continue to slide lower for the sixth consecutive month of declines.

Everything seems to continue to go wrong in the EU with eurocrats fighting over lending and bailout terms with manufacturing and services confidence wearing thin as well. It backs up our case for shorting the Euro which we’ve done via the FXE ETF in our Real-Time Positions. 

A Eurozone Crisis Of Confidence  - aa. 1

A Eurozone Crisis Of Confidence  - aa. 3

The uncertainty revolving around a monetary, fiscal and banking union as Germany pushes back over terms of said unions. It appears Draghi’s “unlimited” buying comments from earlier in the month are doing little to restore order to things.

Senior Analyst Matthew Hedrick breaks down the long-term implications for the Eurozone crisis:

"Here we’ll note that the data from the Eurozone continues to paint a challenged fundamental picture over the intermediate to longer term. These confidence figures are but one piece of the puzzle demonstrating the intersection between expectations for slowing growth and the uncertainty on the direction of the Eurozone.  Eurocrats continue to suspend reality and Draghi’s “unlimited” put will continue to fuel a disconnect between the health of the economy and performance of capital markets."