EUR/USD tests highs near 1.2125 as German ZEW Economic Sentiment Index beats estimates with 61.8
|- German ZEW Economic Sentiment arrived at 61.8 in Jan vs. 60.0 expected.
- ZEW Current Situation arrived at -66.4 in Jan vs. -68.5 expected
- EUR/USD flirts with highs near 1.2125 on upbeat ZEW numbers.
The German ZEW headline numbers for January showed that the Economic Sentiment Index improved to 61.8 versus 60.0 expectations and 55.0 last.
While the sub-index Current Conditions figure arrived at -66.4 in Jan versus -68.5 expected and -66.5 booked previously.
Meanwhile, the Eurozone ZEW Economic Sentiment for Jan unexpectedly rose to 58.3 vs. 45.5 expected and 54.4 last.
ZEW President Professor Achim Wambach noted: “Export expectations have increased significantly.”
“Despite the uncertainty about the further course of the lockdown, the economic outlook for the German economy has improved slightly,” Wambach added.
EUR/USD reaction
EUR/USD remains strongly bid on the upbeat German and Eurozone ZEW surveys. The spot adds 0.42% on the day, flirting with daily tops near 1.2125.
Global stimulus expectations buoy the risk sentiment, downing the safe-haven US dollar. Also, markets resort to profit-taking on their long dollar positions ahead of Treasury Secretary nominee Janet Yellen’s testimony.
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