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 15.0 in January as against a 10.7 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -13.8 versus a -19.9 figure in last month.
How could they affect EUR/USD?
The EUR/USD pair lacks direction heading into the European session, as it wavers in an extremely thin range just below the 1.1100 level. Markets remain in a wait-and-see mode ahead of Thursday’s European Central Bank (ECB) monetary policy decision.
On the above-forecast German data, the shared currency could receive the much-needed impetus that could take EUR/USD above the 1.11 handle. Buying interest is likely to accelerate above the last, opening door for a test of the 200-DMA at 1.1133.
Should the numbers disappoint, the rates could drop to 100-DMA at 1.1071, below which the 1.1050 psychological level could be tested.
At the time of writing, EUR/USD meanders near daily lows of 1.1089, flat on the day.
Key Notes
Markets moody after fourth death in China, UK jobs, German ZEW in focus
German ZEW amongst market movers today – Danske Bank
EUR/USD: There is still room for a drop to 1.1065 – UOB
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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