EUR/USD Price Slides After Eurozone and German Sentiment Crashes
EUR/USD Price, News and Analysis:
- ZEW data misses lowly expectations by some distance
- EUR/USD under selling pressure as coronavirus roils markets
EUR/USD Back Below 1.1100 After Dire ZEW Sentiment Data
The single currency is back under pressure after the latest ZEW data highlighted the effect the spread of coronavirus has had on economic sentiment. Markets were expecting the figures to be bad, but todays released missed even the most pessimistic forecasts, leaving the Euro at risk of even further falls.
“The slump of the ZEW Indicator of Economic Sentiment was to be expected. The economy is on red alert. The financial market experts currently expect to see a decline in real gross domestic product in the first quarter, while also considering a further drop in the second quarter to be very likely. For the whole of 2020, the majority of experts currently expect a decline in real GDP growth of approximately one percentage point as a result of the corona pandemic,” saidZEW President Professor Achim Wambach.
While data is still important, the actions of the ECB and the Eurozone’s further response to covid-19, will be the driver of future price action.
German ZEW Economic Sentiment March
EUR/USD is back below 1.1100 and is now looking to test the 200-day moving average again, around the 1.1068 level. Below here, 1.1030 and 1.0985 beckon if negative sentiment continues. All eyes on the ECB and member state responses to the growing coronavirus threat.
EUR/USD Daily Price Chart (September 2019 – March 17, 2020)
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