When is the German ZEW survey and how could it affect EUR/USD?
|German ZEW Survey Overview
The ZEW will release its German Economic Sentiment Index and the Current Situation Index – reflecting institutional investors’ opinions for the next six months – during the early European session this Tuesday. The headline Economic Sentiment Index is expected to rebound to -13 in November from -22.8 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is also expected to bounce from -25.3 in October to -22 for the reported month.
As Danske Bank analysts point out: “In Continental Europe, the ZEW indicator for November will be released. Last month the expectations - current conditions spread turned positive again for the first time since May, boding well for a further stabilisation in PMI manufacturing. A further improvement today will strengthen this signal.”
How could they affect EUR/USD?
Yohay Elam, FXStreet's analyst offered important technical levels to trade the EUR/USD pair: “The Technical Confluences Indicator is showing that EUR/USD is facing fierce resistance at 1.1072. If the world's most popular currency pair breaks higher, the next level to watch is 1.1118, which is the confluence of the SMA 100-4h and the Fibonacci 61.8% one-week.”
“Support awaits at 1.0997. Further down, 1.0969 is where the PP one-day S3 and the PP one-week S1 converge,” he added further.
Key Notes
• EUR/USD forecast: Bears await a sustained break below 1.10 handle, German ZEW eyed
• EUR/USD struggles below 50-DMA ahead of German ZEW, Trump
• EUR/USD Forecast: Holding above 1.1000 but at risk of falling further
About German ZEW
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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