EUR/USD tests 1.1100 on German Jan ZEW Economic Sentiment big beat
|- German ZEW Economic Sentiment arrives at 26.7 in Jan. vs. 15.0 expected.
- EUR/USD renews session highs and looks to regain the 1.11 handle.
The German ZEW headline numbers for January showed that the Economic Sentiment Index jumped to 26.7 versus 15.0 expectations and 10.7 last.
While the sub-index Current Conditions figure arrived at -9.5 in January versus -13.5 expected and -19.9 booked previously.
ZEW President Professor Achim Wambach noted: “The continued strong increase of the ZEW Indicator of Economic Sentiment is mainly due to the recent settlement of the trade dispute between the USA and China. This gives rise to the hope that the trade dispute’s negative effects on the German economy will be less pronounced than previously thought. In addition, the German economy developed slightly better than expected in the previous year. Although the outlook has improved, growth is still expected to remain below average.”
Meanwhile, the Eurozone ZEW economic sentiment for January stood at 25.6 in January vs. 5.5 expected and 11.2 last.
FX Implications
The shared currency received a fresh boost on upbeat German data release, with EUR/USD now renewing session highs at 1.1100.
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