Forex News: Euro Erases Losses Following German Economic Survey
THE TAKEAWAY: German ZEW Survey for Economic Sentiment rises to 31.5 in January -> ZEW predicts Bundesbank may revise GDP outlook -> Euro erases losses
The ZEW survey of German expectations for economic growth rose to the highest point in January since June 2010. The ZEW economic sentiment survey was reported at 31.5, beating expectations for 12.0 and higher than December’s 6.9 survey result. The survey for current situation rose more than expected to 7.1 from 5.7 in December.
In the Euro-zone, the ZEW survey for economic sentiment rose to 31.2 from 7.6 in December. ZEW Economist Michael Schroeder said this should be the turning point and there should be a slow upward move in German growth.
ZEW Economist Marcus Kappler said that there is a good chance that the Bundesbank will revise its economic forecast. In December, the Bundesbank cut its GDP growth prediction for 2013 to 0.4%. The ECB predicted a Euro-zone recovery later in 2013. A sign of economic growth would be Euro positive.
Following the better than expected survey, Euro climbed nearly fifty points against the US Dollar in Forex trading. The Euro fell earlier in the session following an untrue rumor that ECB’s Weidmann had resigned. Resistance could be provided by an 11-month high recently set at 1.3404, while the broken resistance line at 1.3284 could continue to provide support.
EURUSD Daily: January 22, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
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