German ZEW surveys Overview
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 0900GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is seen edging higher for the first time in five months to 12.5 in September after a 10.0 reading registered in August. While the current situation sub-index is expected to tick lower to 86.6 versus 86.7 booked previously.
How could affect EUR/USD?
A positive headline reading may offer fresh impetus to the EUR bulls, sending the EUR/USD closer towards 1.2050 levels. However, if the readings disappoint, the rate could drop back towards mid-1.19s.
Haresh Menghani, Analyst at FXStreet noted: “On a sustained break through the 1.20 mark, the pair is likely to accelerate the up-move towards 1.2030 intermediate resistance before eventually darting towards the 1.2100 round figure mark.”
“On the flip side, immediate downside now seems to be cushioned by a support near 1.1930 level, marking 38.2% Fibonacci retracement level of 1.1662-1.2092 recent up-move. Subsequent drop below the 1.1900 mark could get extended towards 1.1870 level, 50% Fibonacci retracement level and also coinciding with the ascending trend-channel support,” Haresh added.
Key notes
German ZEW expectations to show a small decline to 9.5 – Danske Bank
EUR/USD near 1.2000 ahead of ZEW
About German ZEW Surveys
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
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