German ZEW Economic Sentiment goes negative – EUR/USD approaches
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German ZEW Economic Sentiment goes negative – EUR/USD approaches

It gets worse in Germany: the ZEW economic sentiment fell to -3.6 points. The negative number reflects pessimism. This is the lowest since November 2012. The current situation component  disappoints with 3.2 points. The euro-zone number is only at 4.1 points. Industrial output in the  euro-zone fell by 1.8% m/m and 1.9% y/y. All the figures are below expectations.

EUR/USD now extends its drops, falling towards support at 1.2660.

It’s all negative for the euro-zone figures. Germany is on the verge of recession and if the locomotive cannot move the  zone forward, who can?

The  German ZEW Economic Sentiment was expected to slide to 0.2 points in October from 6.9 in September, indicating very minimal optimism and continuing the slide seen since early in the year.    The Current Situation component  was predicted to slide to 18 points. the all European number was expected to be halved to 7.1 points. At the same time,  euro-zone industrial  production  carried expectations for a drop of 1.6% in August m/m, and 0.9% y/y.

EUR/USD traded  just under 1.27 towards the release, sliding from the highs after weak inflation data from France and Spain.

More  opinions about EUR/USD:

Here is how it looks on the chart:

EURUSD Down on German ZEW data October 14 2014 technical view for currency trading euro dollar

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.