German ZEW Economic Sentiment Index drops to -14.7 in July vs. -10.0 expected

Germany’s ZEW Economic Sentiment Index declined to -14.7 in July.
EUR/USD is battling 1.1000 after the mixed ZEW surveys.

Dhwani Mehta FXStreet

The German ZEW headline number showed that the Economic Sentiment Index fell further in July, arriving at-14.7 from -8.5 seen in June while missing the market expectation of -10.0.

However, the Current Situation Index improved slightly to -59.5 from -56.5 prior, beating estimates of -60.0.

During the same period, the Eurozone ZEW Economic Sentiment Index worsened to -12.2 from -10.0, compared with the estimates of -10.2.

Key points

The ZEW indicator of economic sentiment is shifting even more noticeably into negative territory.

Financial market experts predict a further deterioration in the economic situation by year-end.

Key reason for this is the expectation of rising short-term interest rates in the Eurozone and the US.

Important export markets like China are seen as relatively weak.

The industrial sectors are likely to bear the brunt of the anticipated economic downturn, with profit expectations for these export-oriented industries experiencing a substantial decline once again.

Market reaction

The EUR/USD pair is paring back gains while trading at around 1.1000 on the mixed data, modestly flat 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.

GBP/USD pops to three-week highs above 1.3400

GBP/USD accelerates its advance and surpasses the key 1.3400 barrier on Wednesday. That said, Cable clinches new multi-week tops on the back of the resurgence of the selling interest in the Greenback despite persistent tensions in the Middle East.

EUR/USD reverses losses, targets 1.1450

EUR/USD trades with decent gains north of the 1.1400 hurdle in the latter part of Wednesday’s NA session. The fresh offered stance in the US Dollar allowed the pair to revert the initial drop and refocus on the upside despite the hawkish tone from the FOMC Minutes and persistent geopolitical tensions.

Gold trims losses, looks at $4,100

Gold manages to regain some composure and bounce off earlier lows on Wednesday. The precious metal now shifts its focus to the $4,100 mark per troy ounce amid decent losses in the US Dollar and steady geopolitical jitters.

Dogecoin Forecast: DOGE risks sliding below $0.07 despite returning retail interest

Dogecoin (DOGE) edges lower toward support at $0.07 at the time of writing on Wednesday. The meme coin reflects a broader sell-off in the crypto market, primarily attributed to uncertainty over tensions in the Middle East. Iran launched attacks on American military bases in the Middle East on Wednesday in retaliation for attacks by the United States (US) on several places in Iran.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.