A sixth consecutive in German economic sentiment: ZEW scored 29.8 points. On the other hand, the current conditions component actually rose to 67.7 points. The German ZEW Economic Sentiment was predicted to change course in June and rise to 35.1 after hitting 33.1 points in May. After reaching a peak of 62 points in December, the indicator fell every month in 2014. The Current Conditions component carried expectations for a rise to 62.6 points. Also the all-European figure was expected to rise from 55.2 to 59.6 points. but it rose only to 58.4.
Before the publication, EUR/USD was trading in a higher range, at around 1.3570. It initially dropped, but is stabilizing. It seems that the contradicting figures managed to stabilize the pair.
Yesterday, the final CPI figures for May did not surprise: headline CPI rose by 0.5% and Core CPI by 0.7%. These are the lowest figures for both, but they were already seen. The lack of disappointment enabled the euro to stabilize after getting close to 1.35.
Resistance appears at 1.3585, followed by 1.3650. Support awaits at 1.3550 (weak) and strong support at the round number of 1.35.
For more, see the EURUSD forecast.
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