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The ZEW Economic Sentiment figure stands at 36.4 points. It was predicted to edge up from 36.3 to 38.3 points. Also the Current Situation component was expected to rise from 9.2 to 10 points, but it fell to 8.9 points.

Update 9:10 GMT: After the initial drop, EUR/USD makes a U-turn and rises above 1.30. It seems the pair isn’t going anywhere fast.

The ZEW Economic Sentiment for the whole euro-zone was predicted to jump from 24.9 to 39 points, but it rose only to 27.6 points. Industrial production in the euro-zone exceeded expectations by rising by 1%, while it was expected to rise by only 0.4% month over month and 2.2% year over year. The actual year over year drop was only 1.7%.

EUR/USD was trading just under 1.30 before the publication, after struggling with the line earlier. It slid on the immediate aftermath of the publications, but has recovered some of the losses.

The president of ZEW said that  Eurozone economic situation still “poor”.

While ZEW came out below expectations, the disappointment isn’t so big, and with some help of a better than expected industrial output figure, the euro has room to recover and regain 1.30.

For more on the euro, see the EUR/USD forecast.

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EUR/USD enjoyed some dollar profit taking to rise earlier. However, the  incessant  talk about a negative deposit rate weighs on the common currency.