Once again, the ZEW economic sentiment figure escapes negative ground and scores 1 point. This is still a big fall, from 10.2 last time. However, the current conditions component dropped more sharply from 59.7 to 52.3 points, worse than 55.5 predicted. The all euro-zone ZEW figure dropped as well from 22.7 to 13.6 points.
EUR/USD remains stable just under 1.1180. The fall in oil prices, triggered by a not-so-sufficient freeze agreement is helping the safe haven euro.
The German ZEW Economic Sentiment was expected to fall to a round zero in February, a perfect balance between growth and contraction, after 10.2 points last time. A drop to a negative figure would look worse. The Current Conditions figure carried expectations for a fall from 59.7 to 55.5 points.
EUR/USD was slightly higher after the Draghi drag, trading at 1.1180.
The president of the ECB not only promised to do more in the March meeting but also upped the ante regarding others’ roles. He included thinly veiled criticism towards Germany and said the ECB is the only institution having a stimulative program in the past 4 years.
But is this enough to push the euro lower? There are many factors in markets.
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