THE TAKEAWAY: ZEW survey for German current situation down to 5.4, survey for economic expectations at -15.7 -> ZEW president says Euro crisis weighing on Germany -> Euro sets new lows before reversing losses
The ZEW survey for German assessment of the current situation fell to the lowest level in 2 years, down to 5.4 in November from 10.0 the previous month; the survey disappointed expectations for 8.0. The survey for expectations of German economic growth also disappointed expectations by falling to -15.7 from -11.5 in October, it was the sixth straight month of a negative expectations survey. The ZEW survey for economic sentiment in the Euro-zone was reported at -2.6 for November, down from -1.4 in October.
The German economy slowed to 0.3% growth in Q2 as the debt crisis takes its toll on the Euro-zone’s biggest economy. Forex news sources quoted ZEW President Wolfgang Franz for saying that he sees the Euro crisis impacting Germany for the next six months.
The Euro temporarily declined against the US Dollar in currency markets following the weaker than expected survey results. EURUSD dropped to a daily low of 1.2659 before erasing the losses on news of a Greek debt sale. Support could be provided by today’s daily low, which is also a 2-month low. Resistance could be provided by a previous support around 1.2803.
EURUSD 15-minute: November 13, 2012