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German ZEW jumps to 34.9 points – EUR/USD extends gains

Good  news from Germany: the ZEW economic sentiment  jumps much more than expected to 34.9  points, significantly better than 20.1 predicted. The Current Situation also surprised with 10 points and only the all-European figure fell short with 10 instead of 20.1 points. In  addition, euro-zone trade balance came out at 18.2 billion, slightly better than predicted.

EUR/USD extends its gains to 1.2525. Update: the  move higher, that began before the publication, do not hold and the pair is below 1.25 once again.

The German ZEW  Economic Sentiment  was expected to continue rebounding for a second month in a row, climbing to 19.8 points from 11.5 seen in November. The current situation component carried expectations for rising from 3.3 to 5 points. The all-European indicator was predicted to rise from 11 to 20.1 points.

EUR/USD traded on high ground above 1.25, at 1.2511.

Here is the preview:  EUR/USD: Trading The German ZEW Economic Sentiment

Earlier in the day, Markit released its PMIs. They were mixed on many accounts, but eventually the better than expected German manufacturing PMI had the upper hand on other numbers from the continent and this pushed EUR/USD higher.

It is quite a busy day and we have more data ahead. For more, see the EURUSD forecast.

Here is how it looks on the chart:

EURUSD jumps on strong business sentiment in Germany technical 30 minute chart December 16 2014

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.