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German ZEW Sentiment goes negative -6.8 – Brexit driven

Business confidence tumbles down in Germany with  the ZEW indicator crashing to negative ground, reflecting pessimism. This is Brexit driven. Current conditions also missed with a slide to 49.8 points. The all European figure has also gone negative with -14.7, way worse than +12.3 points expected. At the same time,  At the same time, the euro-zone construction output for May also looks weak  with a drop of 0.5%.

EUR/USD is not really reacting, not yet. The IFO  figure will be eyed for confirmation.

Germany ´s ZEW Economic Sentiment was expected  to be slashed to 9 points in July after 19.2 in June, a drop related to Brexit. The Current Conditions component carried expectations for a drop from 54.5 to 51.8 points.

EUR/USD was frustratingly stable at 1.1070, hardly moving for long days.

The big event of the week is the rate decision of the European Central Bank on Thursday. Mario Draghi and his colleagues are not expected to change policy, but they have a long list of issues on the agenda: Brexit, Italy’s banks and low inflation.

More:  Dollar strengthening should weaken the EUR over short to medium term

EURUSD July 19 2016 technical 1h chart

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.