Germany’s ZEW Economic Sentiment Index disappointed in February by falling to 55.7 points. It was expected to remain almost unchanged from the previous level of 61.7 points. The all European figure was expected to stand at 73.9 points and it fell short as well with 68.5 poitns. After a steady climb, the number is certainly a negative surprise, even though it is well in positive territory.
EUR/USD was on the rise towards the publication, trading at 1.3720. The pair is now at 1.3710, erasing the earlier gains.
The current conditions component stands at 50 points, better than 44 expected. This helps soften the drop.
The ZEW economic index was on the rise in recent months, enjoying the solid German growth, reflected also in GDP numbers as well as in PMIs.
Support lies at 1.37, followed by 1.3650. Resistance is at 1.3750. For more, see the EURUSD forecast.
While the euro is recently showing strength against the US dollar, it is not as strong against the rising British pound.
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