German ZEW economic sentiment dives to -44.1 in August, a huge miss – EUR/USD tests lows

The German ZEW headline numbers for August showed that the economic sentiment index came in at -44.1 versus -28.5 expectations and -24.5 last. While the sub-index current conditions figure dropped to -13.5 in August versus -7.0 expected and -1.1 booked previously.

ZEW President Professor Achim Wambach noted: “The ZEW Indicator of Economic Sentiment points to a significant deterioration in the outlook for the German economy. The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit place additional pressure on the already weak economic growth. This will most likely put a further strain on the development of German exports and industrial production.”

Meanwhile, the Eurozone ZEW economic sentiment for August arrived at -43.6 vs. -21.7 expected and -20.3 last.

The shared currency remains unmoved by the awful German and Eurozone ZEW surveys, with EUR/USD keeping its range play intact between 1.1200-1.1180 levels.