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 this Tuesday, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to drop to 75.2 in July as against a 79.8 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at 5.0 versus a -9.1-figure recorded previously.
How could they affect EUR/USD?
EUR/USD is retreating from multi-day highs of 1.1895 heading into the German ZEW release. “Any subsequent move up beyond the 1.1900 mark might still be seen as a selling opportunity. This, in turn, should cap the pair near the 1.1935-40 supply zone. That said, a convincing breakthrough the latter will be seen as a fresh trigger for bullish traders and assist the pair to aim back to reclaim the key 1.2000 psychological mark. On the flip side, immediate support is pegged near the 1.1850-45 region. The sustained weakness below will reaffirm the negative outlook and prompt some aggressive technical selling. The pair might then accelerate the slide back towards challenging multi-month lows, around the 1.1800 mark,” FXStreet’s Analyst Haresh Menghani explains.
Key notes
EUR/USD Forecast: Relief rally? US data could slam the pair back down, levels
EUR/USD set to move downward in the second half of 2021 – OCBC
Forex Today: Commodity currencies rally against dollar, ISM Services PMI in focus
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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