WHEN IS THE GERMAN ZEW SURVEY AND HOW COULD IT AFFECT EUR/USD?

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 0900 GMT in the EU session later today; reflecting institutional investors’ opinions for the next six months. The headline Economic Sentiment Index is expected to improve to 60.0 in July as against a 63.4 reading booked in the previous month. Meanwhile; the Current Situation Sub-Index is likely to arrive at -65.0 versus a -83.1-figure recorded last month.  

WHEN IS THE GERMAN ZEW SURVEY AND HOW COULD IT AFFECT EUR/USD?

  The California shutdown and growing coronavirus cases worldwide continue to bode well for the safe-haven, the US dollar; limiting the upside attempts in EUR/USD near 1.1350. The focus now shifts to the German ZEW release for fresh near-term trading impetus.   Should the German data beat estimates; the shared currency could see a fresh leg higher and drive EUR/USD above 1.1350. A break above which would open doors for a test of the five-week highs of 1.1375. On a downside surprise; the rates could drop back below 1.1300. The reaction to the German data could likely be limited; as investors await the US CPI data for a fresh direction on the spot. At the time of writing; EUR/USD trades at 1.1336; modestly flat on the day.

Key notes

EUR/GBP climbs to one-week tops, around mid-0.9000s EUR/USD targets the June and July highs at 1.1374/1.1422 – Commerzbank EUR/USD looks north but risk aversion could play spoilsport

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). You might also be in interested: Economic data program