ZEW Index Falls By Less Than Expected, DAX Still Weakens
EURUSD and DAX price, news and analysis:
- The ZEW indicator of German economic sentiment fell by 10.6 in September. That was better than both the expected drop of 13.5 and the previous decline of 13.7.
- There has been little impact on EURUSD but the DAX index of German-listed stocks is weakening.
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ZEW index beats expectations
The ZEW indicator of German economic sentiment fell by 10.6 in September; better than both the -13.5 predicted by analysts and the -13.7 recorded in August. While EURUSD was largely unchanged on the data, the German DAX stock-market index is falling following the data release.
DAX Price Chart, Five-Minute Timeframe (September 11, 2018)
The current conditions index came in at 76.0, up from 72.6 and above the 72.0 forecast, but ZEW said that during the survey period, currency crises in Turkey and Argentina intensified while German industrial production and incoming orders were surprisingly low.
The ZEW index of economic sentiment is a leading indicator for the German economy but generally has less impact on the markets than the similar Ifo index. Nonetheless, it is one of the first indicators of the strength of the Eurozone economy each month so still has an effect. It is based on a survey of up to 300 analysts from banks, insurance companies and the financial departments of selected companies.
Calculated by ZEW, the Center for European Economic Research in Germany, it has now been negative for six successive months.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.