EU and German ZEW Economic Sentiment Paints a Mixed Picture
Euro Zone ZEW Economic Sentiment = - 43 (prior = -38.7)
German ZEW Economic Sentiment = - 41 vs - 48.5 exp
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Notable Takeaways from the Report:
- Considerable Decline in inflation expectations provides a cause for hope
- However, the prospect of stagflation over the next six months remains
The EU ZEW economic sentiment study surveys around 275 German institutional investors and analyst who are highly informed in topics relating to the future economic landscape due to the nature of their jobs. All participants are asked to rate the relative economic outlook for the next six months with readings below 0 indicating pessimism and readings over 0 indicating optimism.
The latest reading has the figure approaching the March 2020 low (-49.5) at the time when the economic effects of the pandemic were clear to see.
Eurozone ZEW Economic Sentiment
The German ZEW survey often overshadows the EU survey, as Germany is the largest economy in the Eurozone. The German figure, while extremely pessimistic, was way better than the forecasted -48.5 (-1.5% away from the worst report seen in years)
The immediate effect of the EUR/USD pair was negligible as the pair traded within the daily range. Attention shifts to the ECB interest rate meeting on Thursday as a major potential source of volatility.
5 min EUR/USD Chart
Source: TradingView, prepared by Richard Snow
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--- Written by Richard Snow for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.