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The important German ZEW survey dropped to 36.3 points. It was expected to show a small rise in economic sentiment from 38.5 to 39.6 points. The “current situation” number was also expected to advance from 8.6 to 9 points and it surprised to the upside with a rise to 10.6 points. The all-European economic sentiment carried expectations to rise from 30.6 to 31.8 points and it climbed all the way to 32.8. So, while the most important figure disappointed, the others actually exceeded expectations.

EUR/USD was looking for a direction before the publication, sliding to 1.3060 after an early rise towards 1.31. It fell to 1.3050 immediately after the publication.

EUR/USD Could Retest 1.3220 – Elliott Wave Forecast

The release of the ZEW survey somewhat overshadowed other European numbers: CPI was expected rose by 1.6% (annualized)  as expected and core CPI by 1.2%, also as predicted. The seasonably adjusted trade balance surplus for May fell to 14.6 billion, below estimations to remain around 16.1 billion reported for April.

For more on the euro, see the EURUSD forecast.