German ZEW Survey OverviewGerman 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 advance to 5.0 in May as against a -3.1 reading booked in the previous month. Meanwhile, the current situation sub-index is likely to rebound to 7.5 versus a sharp drop to 5.5 recorded in April.
How could affect EUR/USD?How could affect EUR/USDEUR/USD?
FXStreet´s own Analyst, Haresh Menghani writes: “Despite the overnight pullback, the pair has managed to hold its neck above a short-term descending trend-line resistance break-point and still seems poised to make a fresh attempt towards reclaiming the 1.1300 round figure mark.”
“On the flip side, the 1.1200 handle (resistance turned support) now seems to protect the immediate downside, which if broken might accelerate the slide towards 1.1170-65 horizontal support. A follow-through selling might negate any near-term positive bias and turn the pair vulnerable to head back towards the 1.1100 handle before eventually dropping to challenge the trend-channel support, currently near the 1.1060-55 region,” Haresh adds.
Key NotesKey NotesEUR/USD stays bid around 1.1240 ahead of ZEWGerman ZEW amongst market movers today – Danske Bank
About German ZEWAbout 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).Zentrum für Europäische WirtschaftsforschungZentrum für Europäische Wirtschaftsforschung