When is the German ZEW survey and how could it affect EUR/USD?
German ZEW Survey Overview
The ZEW will release its German Economic Sentiment Index and the Current Situation Index at 1000 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to deteriorate to -26.4 in March as against an 8.7 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -30.0 versus a -15.7 figure in last month.
How could they affect EUR/USD?
The haven demand for the US dollar remains high across the board this Tuesday, as markets remain unnerved amid growing economic risks from the coronavirus outbreak.
On the above-forecast German data, the shared currency could receive the much-needed impetus that could drive EUR/USD back towards the 1.1200 level. The rebound could likely pick up pace above the latter, opening doors for a test of 1.1237, Monday’s high.
Should the numbers disappoint, the rates could drop sharply to test the recent support near the 1.1060 region. At the time of writing, EUR/USD trades at 1.1130, down 0.38% on a daily basis.
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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).