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 0900 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to deteriorate to 69.8 in September as against a 71.5 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -72.0 versus a -81.3-figure recorded last month.
How could they affect EUR/USD?
Broad-based US dollar rebound fuels the drop in EUR/USD from 1.1900. The greenback fell to a multi-day low below the 93 level on improved risk appetite, induced by upbeat Chinese Retail Sales and Industrial Production data. Markets now await the German ZEW Survey to gauge the next moves in the spot.
Should the German data beat estimates, the spot could challenge 1.1900 once again. A break above which would open doors for a test of last week’s high of 1.1918.
On a downside surprise, the rates could extend the retreat towards the 5-DMA support at 1.1849. The next downside cap is seen at 1.1833/30 (10-DMA/ Monday’s low).
At the time of writing, EUR/USD trades at 1.1880, up 0.09% on the day.
Key notes
EUR/USD looks firmer and approaches 1.1900 ahead of ZEW
EUR/USD Forecast: Last rise on top of uptrend support? Fed fears set to trigger a correction
Forex Today: Upbeat Chinese data boosts mood, Boris' bill passes first hurdle, Gold shines
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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