The highly regarded ZEW Economic Sentiment for Germany advanced to 49.6 points. It was expected to advance once again from 42 to 45.3 points. Also the all-European figure carried expectations for a similar rise from 44 to 47.2 points, and here the surprise was even wider: the updated figure for September stands on 58.6 points.
EUR/USD traded at 1.3355 before the publication, rising from the lows seen earlier. It advanced to just under 1.3370 after the publication, but already retraced half of the move.
ZEW is an early survey of economic sentiment. It is in the highest level since April 2010, just before Greece received the first bailout.
Also the accompanying comments from ZEW are upbeat for the German and the EU economy: they say that Germany benefits from a better European outlook.
In addition, the euro-zone released trade balance figures: these showed a surplus of 11.1 billion in July, lower than 15.3 expected. Perhaps the economy is not that strong?
The euro enjoyed the withdrawal of Larry Summers from the candidacy to the Federal Reserve, like all the currencies. However, it still remains vulnerable towards QE tapering.
Resistance appears at the round number of 1.34, followed by 1.3480. Support is now at the bottom of this week: 1.3325. This is followed by 1.33.
For more levels, events and analysis, see the EURUSD forecast.
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