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ZEW disappointed in the headline but surprised in the current situation component. The headline Economic Sentiment figure dropped to 43.2 points while the Current Situation actually improved to 59.5 points. The important German ZEW Economic Sentiment Index for April was expected to remain at similar levels to last month’s 46.6 points. The “Current Situation” sub component was predicted to remain around 51.3 points. The all European figure was expected to tick down from 61.5 points and it did: to 61.2 points. The German figure is of higher importance.

EUR/USD was pressured towards the release, trading just under 1.38. It immediately fell to new lows of 1.3789, but recovered back to the round number of 1.38. It seems unable to retake previous levels, but the numbers are not too bad to trigger an extension of the fall.

The positive number reflects expectations for improving economic conditions. The euro continues suffering from the strong comments by Draghi, that warned about further stimulus on further euro strength.

The euro-zone trade balance came out at 13.9 billion for February, within expectations.

EUR/USD has support at 1.3740 and resistance awaits at 1.3830. For more, see the euro dollar forecast.