Talking Points
- German economic sentiment fell to 17.5 in July from 18.6 in the previous month, according to an indicator compiled by the ZEW research institute; below the 18.0 consensus forecast.
- However, the outlook for German economic growth continues to be positive, it argues.
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The ZEW research institute’s German economic sentiment indicator fell to 17.5 in July, below both the previous 18.6 and the 18.0 consensus forecast from analysts. Its current conditions index eased to 86.4 from 88.0, also missing the predicted 88.0.
However, “Our overall assessment of the economic development in Germany remains unchanged compared to the previous month,” said ZEW President Achim Wambach. “The outlook for the German economic growth in the coming six months continues to be positive. This is now also reflected in the survey results for the Euro-Zone,” he added. ZEW’s economic sentiment indicator for the Euro-Zone as a whole dipped to 35.6 in July from the previous 37.7.
In the markets, EUR/USD crept modestly higher after the data.
Chart: EUR/USD Five-Minute Timeframe (July 18, 2017)
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at martin.essex@ig.com
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