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 to 14.0 in April after 12.8 registered in March. While the current situation sub-index is also expected to improve in April, and is seen arriving at 77.7 versus 77.3 last.
How could affect EUR/USD?
A better ZEW survey may offer the EUR bulls some respite, sending the EUR/USD pair back beyond 1.06 handle. However, if the readings disappoint, the rate could breach the multi-week lows of 1.0570 reached a day before.
A positive surprise in the data cannot be ruled out, following solid German IFO business climate index, which rose to near seven-year highs last month.
Key notes
German ZEW: Scope for upside surprises in both the Current Conditions and Expectations - TDS
According to the analysts at TDS, the German ZEW index offers a first glance at business sentiment in April and they see scope for upside surprises in both the Current Conditions and Expectations indexes, with the former rising to 80.4 (consensus: 77.5) and the latter rising to 15.3 (consensus: 14.5).
EUR/USD consolidates the dip below 1.0600, ZEW eyed
The major finds some support from aggressive selling in the treasury yields, which may help the rate to rise back above 1.0600 levels. Moreover, a positive German ZEW print could also provide extra legs to the ongoing minor-recovery seen in the EUR.
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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