When are the German ZEW surveys and how could it affect EUR/USD?

German ZEW Overview

The ZEW will release Germany’s Economic Sentiment Index for the next six months at the same time, as well as the Current Situation Index in the EU session, reflecting the institutional investors’ opinions.

The headline economic sentiment index is expected to drop further to -18.0 in July versus -16.1 last while the current situation sub-index is also likely to decline to 78.2 versus 80.6 booked in June.     

 How could affect EUR/USD?

On a positive surprise, the EUR bulls could regain poise, pushing the EUR/USD pair back towards the 1.1800 mark. However, the spot could extend the drop to the 1.1700 support should the data show disappointing results.   

The AceTrader Team explains, although yesterday's 'cable-led' decline from a fresh 3-week high at 1.1791 to 1.1732 in New York suggests recent erratic upmove has made a temporary top and consolidation is in store, as long as 1.1697 (previous. res, now sup) holds, prospect of marginal gain is still envisaged, loss of momentum should cap price below key daily res at 1.185 this week. A daily close below 1.1697 would risk stronger retracement of recent rise to 1.1650 before prospect of rebound.”

Key Notes

Germany: ZEW index to fall further in July - TDS

German ZEW and UK GDP amongst market movers today – Danske Bank

EUR/USD Technical Analysis: within a consolidative theme underpinned by 10-day/21-day SMA.

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).