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 at 1000 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to improve to 0 in December as against a -2.1-reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -22.3 versus a -24.7 figure in last month.
How could they affect EUR/USD?
The EUR/USD pair extends its side-trend into early European trading, although remains supported by broad-based US dollar weakness amid US-China trade tensions led weakness in Treasury yields. The USD traders resort to repositioning, as the two-day FOMC meeting commences later on Tuesday, with the key interest rate decision due to be announced on Wednesday at 1900 GMT.
On the above-forecast German data, the shared currency could receive a fresh boost that could take EUR/USD closer to the 1.11 handle. Buying interest is likely to accelerate above the last, opening door for a test of the 200-DMA at 1.1155.
Should the numbers disappoint, the rates could drop to Dec 6 lows of 1.1040, below which the 1.1000 psychological level could be tested. A failure to resist the last could expose the 1.0980 (November lows).
At the time of writing, EUR/USD is posting fresh session highs at 1.1071, up +0.10% on the day.
Key Notes
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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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