German ZEW Economic Sentiment Index declines to -10.7 in May vs. -5.5 expected
- Germany’s ZEW Economic Sentiment Index dropped more than expected in May.
- EUR/USD remains unfazed near 1.0900 on the mixed ZEW surveys.
The German ZEW headline number showed that the Economic Sentiment Index deteriorated sharply in May, arriving at-10.7 from 4.1 in April, missing the market expectation of -5.5.
Meanwhile, the Current Situation Index improved to -34.8 from -32.5, bettering the market expectation of -37.5.
During the same period, the Eurozone ZEW Economic Sentiment Index worsened to -9.4 from 6.4, compared to the estimates of 8.2.
Key points
Indicator of economic sentiment has once again fallen sharply.
Financial market experts anticipate a worsening of the already unfavorable economic situation in the next six months.
German economy could slip into a recession, albeit a mild one.
Sentiment indicator decline is partly due to expectations of further interes rate hikes by the ECB.
Market reaction
The EUR/USD pair has paid a little heed to the mixed data, holding the higher ground near 1.0900, up 0.20% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
