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 1000 GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is expected to drop to 16.0 in February after a 20.4 figure registered in January. While the current situation sub-index is also like to come in weaker at 93.9 versus 95.2 booked previously.
How could affect EUR/USD?
A positive surprise may offer fresh impetus to the EUR bulls, sending the EUR/USD back the 1.24 handle. However, if the readings show a bigger-than-expected drop, the rate could drop back towards the 1.2350-40 support zone.
Haresh Menghani, Analyst at FXStreet notes: “The short-term technical picture also points to some additional near-term bearish pressure, which could drag the pair towards 1.2335-30 area ahead of the 1.2300 handle. Below the mentioned levels, the downfall could further get extended towards 1.2240 horizontal zone en-route the important 1.2210-2200 support.”
“On the flip side, any meaningful recovery attempt is likely to confront fresh supply near the 1.2430-35 region, above which the pair is likely to make a fresh attempt towards conquering the key 1.2500 psychological mark,” Haresh adds.
Key Notes
Germany: Expect mixed result from ZEW index for February – Danske Bank
EUR/USD flirting with lows near 1.2380 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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