When is the German ZEW survey and how could it affect EUR/USD?
German ZEW Overview
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 1000 GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is expected to drop further to -25.0 in December versus -24.1 last while the current situation sub-index is also likely to decelerate to 55.6 versus 58.2 booked in the month of November.
How could affect EUR/USD?
On a positive surprise in the headline reading, the EUR bulls could extend their control, pushing the EUR/USD pair northwards for a test of the 1.1400 level. However, the spot could stall the bounce and drop back below the 1.1550 support area should the data show a bigger-than-expected drop.
FXStreet´s Editor and Analyst, Haresh Menghani notes, “a follow-through weakness below the 1.1350-45 region will further reinforce the false breakout and accelerate the slide towards another ascending trend-line support, currently near the 1.1300 handle. On a sustained weakness below the mentioned support would turn the pair vulnerable to head back towards challenging yearly lows, around the 1.1215 region.”
“On the flip side, the 1.1400-10 region now becomes immediate strong resistance to conquer, above which the pair is likely to aim towards reclaiming the key 1.1500 psychological mark”, Haresh adds.
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About German ZEW
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).