German ZEW Survey - Economic Sentiment deteriorates significantly to -17.2 in April

Lallalit Srijandorn FXStreet

German ZEW Survey - Economic Sentiment deteriorates significantly to -17.2 in April. Economists already anticipated the sentiment data to come in lower at -5 from -0.5 in March.

The ZEW Survey - Current Situation comes in sharply lower too at -73.7 vs. -70.0 estimates and the previous reading of -62.9.

In the Eurozone, the ZEW Survey - Economic Sentiment also worsened significantly. The data have come in at -20.4, while it was expected to improve to -3.6 from the prior release of -8.5.

Market reaction

There seems to be a slight negative impact on the Euro (EUR) after the data release. However, EUR/USD is already down over 0.2% near 1.1760 as of writing.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.24%	0.27%	0.25%	0.10%	0.38%	-0.14%	0.27%
EUR	-0.24%		0.04%	0.06%	-0.13%	0.15%	-0.38%	0.04%
GBP	-0.27%	-0.04%		0.00%	-0.16%	0.10%	-0.42%	0.00%
JPY	-0.25%	-0.06%	0.00%		-0.15%	0.12%	-0.44%	0.01%
CAD	-0.10%	0.13%	0.16%	0.15%		0.27%	-0.28%	0.17%
AUD	-0.38%	-0.15%	-0.10%	-0.12%	-0.27%		-0.54%	-0.07%
NZD	0.14%	0.38%	0.42%	0.44%	0.28%	0.54%		0.44%
CHF	-0.27%	-0.04%	-0.01%	-0.01%	-0.17%	0.07%	-0.44%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

(This section below was published at 05:44 GMT today as a preview of the German and the Eurozone ZEW Survey data for April)

German ZEW Survey Overview

The Zentrum für Europäische Wirtschaftsforschung (ZEW) will release its German Economic Sentiment Index and the Current Situation Index for April at 09:00 GMT later on Tuesday.

ZEW Survey – Economic Sentiment Index for Germany is expected to fall to -5.0 in April, from -0.5 in March. Meanwhile, the Current Situation Sub-Index is expected to drop to -70 in the reported month, down from the previous reading of -62.0.

ZEW Survey – Economic Sentiment in Eurozone is expected to decline to -3.6 in April, from -8.5 previously.

How could the German ZEW Survey affect EUR/USD?

EUR/USD trades on a negative note on the day in the lead up to ZEW Survey. The pair edges lower as the US Dollar (USD) strengthens amid cautious markets ahead of potential US-Iran peace talks.

If data comes in better than expected, it could lift the Euro (EUR), with the first upside barrier seen at the 1.1800 psychological level. The next resistance level emerges at the April 17 high of 1.1849, en route to the February 9 high of 1.1926.

To the downside, the April 20 low of 1.1728 will offer some comfort to buyers. Extended losses could see a drop to the 100-day Exponential Moving Average (EMA) of 1.1680, followed by the April 8 low of 1.1588.

Economic Indicator

ZEW Survey – Economic Sentiment

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).

EUR/USD looks well bid above 1.1600

EUR/USD extends its recovery and climbs back above the 1.1600 mark in quite an auspicious start to the week. Improved risk appetite following the US-Iran agreement to reopen the Strait of Hormuz continues to weigh on the US Dollar, lending support to the risk complex. Looking ahead, investors are likely to remain on the sidelines ahead of Wednesday's FOMC meeting.

GBP/USD climbs to multi-day highs around 1.3460

GBP/USD remains comfortably in positive territory north of 1.3400 the figure on Monday. Cable continues to draw support from an improvement in market sentiment after reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold extends the recovery, targets $4,400

Gold rallies on Monday and climbs well above the $4,300 mark per troy ounce. The precious metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.