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 today, reflecting institutional investors’ opinions for the next six months.
The headline Economic Sentiment Index is expected to deteriorate to -42.3 in April as against a -49.5 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -77.5 versus a -43.1 figure in last month.
How could they affect EUR/USD?
The haven demand for the US dollar remains intact across the board this Tuesday, as the recent oil-price meltdown and North Korean leader’s health condition continue to keep investors on the edge.
Should the German data surprise to the upside, the shared currency could offer the much-needed respite to the EUR bulls that could drive EUR/USD back above 1.0850 level. The rebound could likely pick up pace above the latter, opening doors for a test of the next resistance located around 1.0890.
On a bigger-than-expected slump in the numbers, the rates could breach the 1.0800 level, in a bid to test the April lows of 1.0768. At the time of writing, EUR/USD trades at 1.0837, down 0.23% on a daily basis.
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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).