Germany: Horrific ZEW data – TD Securities

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that Germany's August ZEW data was simply horrific, with current conditions falling from -1.1 to -13.5 (mkt -6.3), and expectations from -24.5 to -44.1 (mkt -28.0), even worse than our below-consensus forecasts.

Key Quotes

“Current conditions have fallen below their EZ crisis low of +3.2, although are still miles away from the financial crisis low of -92.8. Expectations still have some ways to go to match the EZ crisis low of -55.2, and are even further from the financial crisis low of -63.9.”

“The ZEW institute said that today's downside came from the US-China trade dispute, the risk of competitive devaluation, and the increased likelihood of a no-deal Brexit, all of which will likely put further strain on German exports and IP going forward.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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