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 improve to 60.0 in June as against a 51.0 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -84.7 versus a -93.5 figure recorded last month.
How could they affect EUR/USD?
Optimism over additional stimulus to stimulate the economic recovery worldwide has sent the global stocks through the roof at the expense of the safe-haven US dollar. Therefore, amid broad US dollar weakness, the EUR/USD pair clings onto minor gains heading into the German ZEW release.
Should the German data beat estimates, the shared currency could see a fresh leg higher and drive EUR/USD towards 1.1364 (daily classic R1). A break above which would open doors for a test of the 1.1400 mark.
On a downside surprise, the rates could pare back the previous gains to test the daily pivot point at 1.1295. The reaction to the German data could likely be limited, as investors await the US Retail Sales data and Fed Chair Powell’s testimony for a fresh direction.
At the time of writing, EUR/USD trades at 1.1336, up 0.10% on a daily basis.
EUR/USD Forecast: Stage seems set for a move towards reclaiming 1.1400 mark
EUR/GBP trims losses below 0.9000 after UK jobs report
Forex Today: Double stimulus talk downs dollar ahead of Powell’s power-play, US retail sales
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).