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 on Tuesday, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is likely to extend its downtrend in September, seen arriving at 30.0 as against a 40.4 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is foreseen at 34.0 versus 29.3 previous.
How could they affect EUR/USD?
EUR/USD has erased early gains, as it now trades flat at 1.1870 heading into the German ZEW release. Upbeat German data could help revive the upside in the spot towards the daily highs of 1.1885. The 1.1900 level could be next on the buyers’ radars. Should the German figures disappoint, the major could extend the downside below 1.1850. opening floors for a test of 1.1800.
The ECB decision due on Thursday remains the main event risk for the euro this week, as the tapering debate is back on the table for the policymakers.
Key notes
The ZEW-survey is unlikely to leave traces with the ECB meeting looming
EUR/USD: Shorts need stops above 1.1960
Forex Today: Dollar regains poise amid firmer yields, risk-on mood
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).
