When are the German ZEW surveys and how could they affect EUR/USD?

Dhwani Mehta FXStreet

The 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 10 GMT in the EU session later today, reflecting institutional investors’ opinions.

The headline economic sentiment index is seen edging higher to 17.8 in January after a 17.4 reading registered in December. While the current situation sub-index is also expected to improve to 89.8 versus 89.3 booked previously.

How could affect EUR/USD?

A positive headline reading may offer fresh impetus to the EUR bulls, sending the EUR/USD back above 1.2275 levels. However, if the readings disappoint, the rate could drop back towards the 1.22 handle.

Haresh Menghani, Analyst at FXStreet notes: “A convincing move beyond the 1.2300 handle would mark a fresh bullish breakout and with short-term indicators still holding in bullish territory, the pair seems all set to test 1.2355-60 supply zone before eventually darting towards the 1.2400 handle.”

“On the flip side, the 1.2220-10 region might continue to protect the immediate downside, which if broken might drag the pair back towards the lower end of its one-week old trading range support, near the 1.2175-65 zone,” Haresh adds.

Key notes

German ZEW survey to continue to edge higher in January - TDS

EUR/USD: 1.2275 – a tough nut to crack ahead of German ZEW?

About the 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).

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.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.