When are the German ZEW surveys and how could they affect EUR/USD?
German ZEW Surveys Overview
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 1000 GMT in the EU session later today, reflecting institutional investors’ opinions.
The headline economic sentiment index is expected to drop to 13.0 in March after a 17.8 figure registered in February. While the current situation sub-index is also like to come in weaker at 90.0 versus 92.3 booked previously.
How could affect EUR/USD?
A positive surprise may offer fresh impetus to the EUR bulls, sending the EUR/USD pair closer towards the 1.24 handle. However, if the readings show a bigger-than-expected drop, the rate could drop back to test the 1.2300 levels.
Haresh Menghani, Analyst at FXStreet notes: “From a technical perspective, any subsequent up-move is likely to face still resistance near the 1.2380-85 region, marking a short-term descending trend-line. A convincing move beyond the mentioned hurdle should trigger a bout of short-covering, assisting the pair to surpass the 1.2400 handle and aim towards retesting the key 1.2500 psychological mark.”
“On the flip side, the 1.2300 handle now seems to protect the immediate downside, which if broken might drag the pair back towards 1.2260-55 support area. A follow-through selling pressure has the potential to continue dragging the pair towards the lower end of a two-month-old trading range support near the 1.2200-1.2180 zone,” Haresh adds.
Key Notes
European Calendar in Spotlight
Eurozone Data, FOMC In The Headlines On Tuesday
About German ZEW Surveys
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).