German ZEW Overview
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 0900 GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is expected to drop further to -14.0 in September versus -13.7 last while the current situation sub-index is also likely to tick down to 72.0 versus 72.6 booked in August.
How could affect EUR/USD?
On a positive surprise in the headline reading, the EUR bulls could extend their control, pushing the EUR/USD pair closer towards the 1.1700 mark. However, the spot could stall the upside and drop back to the 1.1600 support area should the data disappoint.
The AceTrader Team explains, “yesterday’s rebound from a fresh 2-week low of 1.1526 (Europe) and then intra-day ‘sterling-led’ rally to 1.1616 in New York morning suggests euro’s recent decline from August’s 1.1734 peaks has made a temp. low there and consolidation with upside bias remains for gain to 1.1649/59 res, break there would encourage for subsequent headway towards 1.1690. Only below 1.1564 dampens present bullish scenario on euro, however, reckon 1.1526/30 sup would remain intact.”
Key Notes
Germany: Focus on ZEW Survey – TDS
EUR/USD Forecast: Likely to consolidate ahead of Thursday’s ECB meeting
About German ZEW
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
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