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There was a massive beat against analyst expectations for German Zew economic sentiment today.

There were a few key reasons for the change in sentiment according to the economic think tanks.

ZEW said  that the improved outlook for Brexit, Auto tariffs from the US and the US-China trade deal increase optimism among companies.

Growing hope that the international economic policy eniviroment will improve in the near future, which explains the sharp rise in the ZEW indicator of economic sentiment in November

The slowdown in the EU are is still the key issue for the EUR against most of its counterparts. Now that sentiment is improving maybe it could encourage companies to spend and grow but it’s clear that tariffs and trade wars are on investors minds.

The EUR was largely unfazed by the improvement and actually pushed down slightly EUR/USD has been struggling for much of the session anyway and trades 0.05% lower on the day.