Breaking: EUR/USD refreshes 34-month low on German Feb ZEW Economic Sentiment big miss

German ZEW Economic Sentiment arrives at 8.7 in Feb. vs. 21.5 expected.
Eurozone ZEW Economic Sentiment came in at 10.4 in Feb. vs. 30.0 expected
EUR/USD refreshes 34-month lows but holds above 1.0800.

FXStreet Team FXStreet

The German ZEW headline numbers for February showed that the Economic Sentiment Index dropped to 8.7 versus 21.5 expectations and 26.7 last.

While the sub-index Current Conditions figure arrived at -15.7 in February versus -10.3 expected and -9.5 booked previously.

ZEW President Professor Achim Wambach noted: “The feared negative effects of the Coronavirus epidemic in China on world trade have been causing a considerable decline of the ZEW Indicator of Economic Sentiment for Germany. Expectations regarding the development of the export-intensive sectors of the economy have dropped particularly sharply. Besides, the end of 2019 and the beginning of 2020 saw a worse-than-expected development of the German economy. Both the downward revision of the assessment of the economic situation and the downturn in expectations show clearly that economic development is rather fragile at the moment.”

Meanwhile, the Eurozone ZEW economic sentiment for February stood at 10.4 vs. 30.0 expected and 25.6 last.

FX Implications

The shared currency met fresh supply on downbeat German data release, with EUR/USD now renewing a 34-month low at 1.0822.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD flirts with 2026 lows around 0.6850

AUD/USD has rapidly left behind Monday’s optimism, shifting its attention to the downside and navigating the area of multi-month lows in the mid-0.6800s. The pair’s severe slump has come amid renewed and strong upside traction in the Greenback following further repricing of a rate hike by the Fed at its December meeting.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold flirts with $4,000 on solid USD buying

Gold slips back to the proximity of the key $4,000 mark per troy ounce on Tuesday, reaching new four-day lows at the same time. The yellow metal’s severe retracement follows the firm performance of the US Dollar, rising US Treasury yields across the curve and reignited speculation of extra Fed tightening.

Bitcoin vs Gold Outlook: BTC and XAU pull back as US inflation rises in October

Bitcoin (BTC) and Gold (XAU/USD) sustain a broad bearish trend on Tuesday, with BTC hovering around $74,000 and XAU near $4,050. The path of least resistance remains downward for both assets, weighed down by weak technical structures and macroeconomic uncertainties. Meanwhile, Gold appears supported at the pivotal $4,000 level, while Bitcoin continues to test lower demand areas toward $70,000.

Five risks for the global economy in 2027

From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.