When are the German ZEW surveys and how could they affect EUR/USD?
|German ZEW Surveys Overview
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 0900 GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is expected to drop sharply to -1.0 in April after a 5.1 figure registered in March. While the current situation sub-index is also like to come in weaker at 88.0 versus 90.7 booked previously.
How could affect EUR/USD?
A positive surprise may offer fresh impetus to the EUR bulls, sending the EUR/USD pair towards 1.2462 (March 23rd tops). However, if the readings show a bigger-than-expected drop, the rate could drop back to test the daily lows of 1.2376.
Jim Langlands at FX Charts notes: “Above 1.2400 we could then head towards 1.2415/20 and even towards 1.2470/75. Beyond 1.2500 looks unlikely for now but if wrong, look for a test of 1.2555, the 16 Feb high. On the downside, the initial support will arrive at 1.2350 ahead of the session low of 1.2323, where the daily cloud base will lend support. Below there could reverse towards 1.2300/05 and then at 1.2260/50, where the rising trend support should remain strong support.”
Key Notes
EUR/USD door open for a correction lower – Danske Bank
About German ZEW Surveys
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
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