German ZEW Economic Sentiment Index substantially improves to -1.1 in October vs. -9 expected
|- Germany’s ZEW Economic Sentiment Index improved to -1.1 in October.
- EUR/USD is keeping the red near 1.0550 after the upbeat ZEW surveys.
The German ZEW headline number showed that the Economic Sentiment Index improved sharply in October, arriving at -1.1 from -11.4 in September while beating the market expectation of -9.
However, the Current Situation Index edged a tad higher to -79.9 from -79.4 prior, beating estimates of -80.5.
During the same period, the Eurozone ZEW Economic Sentiment Index rose to 2.3 from -8.9 recorded in September. The market consensus was for a reading of -8.
Key points
It seems that we have passed the lowest point.
Noticeable uptick in the economic expectations of financial market experts in October 2023.
Assessment of the current economic situation in Germany has barely changed.
Heightened economic expectations are accompanied by the anticipation that inflation rates will decrease further.
Negative factors such as the Israel conflict, cited by some respondents as a reason for revising their growth forecasts downward, had only limited impact on the overall more optimistic outlook.
Market reaction
The EUR/USD pair is holding lower ground near 1.0550 despite the encouraging data, down 0.16% on the day.
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