German ZEW Survey Overview
The ZEW will release its German Economic Sentiment Index and the Current Situation Index at 1000 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to deteriorate to 21.5 in February as against a 26.7 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -10.3 versus a -9.5 figure in last month.
How could they affect EUR/USD?
The EUR/USD pair lacks directional bias heading into the European session, as it wavers above a new 34-month low reached in early Asia at 1.0823. Markets remain unnerved amid growing economic risks from the coronavirus outbreak.
On the above-forecast German data, the shared currency could receive the much-needed impetus that could lift EUR/USD above the 1.0850 level. The corrective bounce is likely to pick up pace above the latter, opening doors for a test of the 10-DMA at 1.0881.
Should the numbers disappoint, the rates could drop to the psychological support at 1.0800, below which the bearish trend will resume.
At the time of writing, EUR/USD trades at 1.0834, flat on the day.
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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).