When is the German ZEW survey and how could it affect EUR/USD?
German ZEW 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 extend its downtrend to -25.0 in November versus -24.7 last while the current situation sub-index is also likely to decelerate to 65.0 versus 70.1 booked in the month of October.
How could affect EUR/USD?
On a positive surprise in the headline reading, the EUR bulls could extend their control, pushing the EUR/USD pair back towards the 1.1300 level. However, the spot could stall the bounce and drop back to the 2018 low of 1.1216 should the data show a bigger-than-expected drop.
FXStreet´s Editor and Analyst, Haresh Menghani notes, “looking at the technical picture, overnight slump below the 1.1300 handle, and a subsequent dip below a descending trend-channel confirmed a near-term bearish breakdown. Hence, any meaningful recovery attempt is more likely to get sold into near the 1.1300 handle and the pair seems more likely to extend the near-term bearish trajectory. The 1.1200 round figure mark now seems to extend some immediate support, below which the pair is likely to accelerate the fall towards 1.1155 intermediate support en-route the 1.1115-10 region.”
Key Notes
Germany: ZEW index likely to deteriorate in November - TDS
EUR/USD: Break below 1.13 mark – Danske Bank
EUR/USD Technical Analysis: Primed for a bullish recovery, but upside limited
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).