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.

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FXStreet Team

FXStreet

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