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 this Tuesday, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to fall further to 56.7 in August as against a 63.3 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at 30.0 versus a 21.9 figure seen previously.
How could they affect EUR/USD?
EUR/USD sticks to four-month lows near 1.1730 heading into the German ZEW release. Upbeat German data could prompt a rebound in the spot towards Monday’s highs of 1.1769. The 1.1800 level could be next on the buyers’ sight. On a data disappointment, the bears could receive a fresh boost, knocking off the rates towards the March lows of 1.1704. Selling interest is likely to intensify below the latter, opening floors for a test of the October lows of 1.1640.
Key notes
Forex Today: Dollar remains in demand amid covid concerns, ahead of US infrastructure vote
EUR/USD struggles near four-month lows around 1.1730 ahead of German data
Intra-day news and views and data to be released today – EUR/USD
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).
