When are the German ZEW surveys and how could it affect EUR/USD?

German ZEW Overview

The ZEW will release Germany’s Economic Sentiment Index for the next six months at the same time, as well as the Current Situation Index in the EU session, reflecting the institutional investors’ opinions.

The headline economic sentiment index is expected to drop further to -14.0 in June versus -8.2 last while the current situation sub-index is also likely to decline to 85.0 versus 87.4 booked in May.

 How could affect  EUR/USD?

On a positive surprise, the EUR bulls could regain poise, pushing the  EUR/USD  pair back above the 1.1800 mark. However, the spot could extend the drop below the 1.1750 support should the data show a bigger-than-expected drop.      

Haresh Menghani, Analyst at FXStreet notes, “from a technical perspective, the pair has broken below a short-term ascending trend-line support but has been finding some buying interest near a previous resistance now turned support, around the 1.1740-30 region. The mentioned area coincides with the 23.6% Fibonacci retracement level of the 1.2414-1.1510 recent downfall and hence, should continue to protect the immediate downside.”

A convincing break through the said support might negate any near-term bullish bias and turn the pair vulnerable to accelerate the fall even below the 1.1700 handle towards its next horizontal support near mid-1.1600s. Alternatively, a move back above the trend-line support break-point, near the 1.1785 level, leading to a subsequent move back beyond the 1.1800 handle,” Haresh adds.

Key Notes

German ZEW and UK employment data in focus today – Nomura

Germany: ZEW data eyed to gauge the economic sentiment – TDS

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).