German ZEW Economic Sentiment Index rebounds to 25.2 in May vs. 11.9 expected

Germany’s ZEW Economic Sentiment Index bounced back to 25.2 in May.
EUR/USD consolidates recovery gains above 1.1100 after German and Eurozone ZEW surveys.

Dhwani Mehta FXStreet

The headline German ZEW Economic Sentiment Index rebounded to 25.2 in May from -14 in April, beating the market consensus of 11.9 by a wide margin.

The Current Situation Index eased slightly to -82 in the same period, as against the April reading of -81.2. Data beat the estimated -77 reading.

The Eurozone ZEW Economic Sentiment Index came in at 11.6 in May from -18.5 in April. The market expectations was -3.5.

Key points

Expectations are brightening.
With a new government in place, some progress in the tariff disputes and a stabilising inflation rate, optimism has increased.
Outlook has improved in particular for banking, automobile, chemical, metal, machine and steel sectors.

Market reaction

The EUR/USD pair defends gains after the mixed German and Eurozone ZEW surveys. The pair is adding 0.17% on the day to trade near 1.1105, as of writing.

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.

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