Quite a turnaround in German business sentiment: optimism seems to to back with the ZEW Economic Sentiment leaps up to 11.5 points. This is far better than expected and back to positive ground. The Current Situation figure is up 3.3 points, and the all-European number is up to 11 points, both better than expected.
EUR/USD is climbing up nicely to 1.2530, extending the move above 1.25 that began before the publication. EUR/GBP is at a new high as well.
The accompanying comments are also positive: the German economy is stabilizing despite being fragile. Ongoing geopolitical tensions affect Germany.
A positive score reflects optimism while a negative one reflects pessimism. The bounce back up is the first one this year. We have seen monthly declines since the beginning of the year.
The German ZEW Economic Sentiment was expected to score +0.9 points in November, up from the negative score for October: -3.6 which was the first pessimistic read in a long time. The current situation component was expected to slide from 3.2 to 1.8 points.
EUR/USD was flirting with 1.25 just before the publication, off from the lows.
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