German ZEW Survey Overview
The ZEW will release its German Economic Sentiment Index and the Current Situation Index at 0900 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to drop to -20.0 in July as against a -21.1 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at 5.0 versus a 7.8 figure in last month.
How could they affect EUR/USD?
FXStreet´s own Analyst, Haresh Menghani writes: “From a technical perspective, the pair’s inability to sustain above an important confluence region - comprising of 100-day SMA and 38.2% Fibo. level of the 1.1412-1.1194 recent downfall, warrant some caution for bullish traders. Sustained move beyond the mentioned barrier, leading to a subsequent breakthrough the 1.1300 handle will now be seen as a key trigger for bullish traders and set the stage for a further near-term appreciating move for the major.”
“On the flip side, the 1.1240 region - the 23.6% Fibo. level might continue to act as immediate support, below which the pair is likely to accelerate the slide further towards challenging the 1.1200 round figure mark. Failure to defend the mentioned handle, leading to a subsequent slide below the 1.1185-80 region might turn the pair vulnerable to resume its prior bearish trend .,” Haresh adds.
Key Notes
Europe: Politics in focus today - TDS
EUR Futures: upside running out of steam
EUR/USD: Positive bias - Commerzbank
About German ZEW
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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