Yet another disappointment from Germany: the ZEW economic sentiment dropped to 8.6 points and the “current situation” also dropped to 44.3 points, and the all-European number at 23.7 points. All data points are significantly below expectations.
The German ZEW Economic Sentiment was expected to slide in August to 18.2 from 27.1 points in July. The “current situation” component was expected to slide from 61.8 to 55.5 points. The all-European figure also carried predictions for a drop from 48.1 to 41.3. ZEW says that geopolitical tensions are behind this move.
EUR/USD was sliding towards the publication, continuing the move began early in the week. It traded just under 1.3360. It is now extending its losses to 1.3345. Update: the new low is 1.3341, but the pair is still shy of the 1.3332 low seen last week and the 1.3325 support level.
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There are growing worries that the weaker growth in the euro-zone’s locomotive are worse than earlier expected. For Q2, Germany is expected to report a small contraction of 0.1% after enjoying a very strong growth rate of 0.8% in Q1.
Earlier in the day, Italy reported a year over year drop of 2.1% in prices. Deflation remains a main concern for the euro-zone.
Later in the day, the US releases the JOLTS job openings, which is a figure that is closely watched by the Federal Reserve.
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