- German ZEW Economic Sentiment arrived at -34.3 in May vs. -41.0 previous.
- The ZEW Current Situation for Germany came in at -36.5 in May vs. -30.8 prior.
- EUR/USD keeps its range around 1.0575 on mixed German and Eurozone data.
The German ZEW headline numbers for May showed that the Economic Sentiment Index improved despite looming recession risks, coming in at -34.3 from -41.0 previous while beating estimates of -42.0 by a wide margin.
Meanwhile, the Current Situation sub-index slumped to -36.5 in May as against -30.8 recorded in the previous month and -35.0 expectations.
The Eurozone ZEW Economic Sentiment Index stood at -29.5 in the current month as compared to the -43.0 previous reading and -41.0 expected.
Key takeaways
Covid restrictions in China contribute to deterioration in the assessment of economic situation there; this is heavy burden for future economic growth in Germany.
A large majority of the experts assume an increase in short-term interest rates by the ECB in the next six months.
Compared to the previous month is the outlook less pessimistic about the economic situation in Germany.
The experts are leaving still expecting it to deteriorate, however with a lower intensity.
Experts expect inflation rate to fall from its current very high level.
FX market reaction
The euro remains unfazed by the mixed ZEW Surveys and Eurozone data. EUR/USD was last seen trading at 1.0575, up 0.17% on the day.