German ZEW Economic Sentiment plunge to 8.6 – EUR/USD


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.

For more levels, events and analysis, see the EURUSD prediction.

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.

See how to trade the JOLTS number with GBP/USD


Get the 5 most predictable currency pairs

About Author

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.

Comments are closed.