Forex News – German ZEW economic sentiment falls, euro briefly falls
July 16, 2013 10:24 am
The euro fell against the dollar after a disappointing report on the German ZEW economic sentiment. The data showed that analyst and investor sentiment in Germany was more pessimistic, mainly driven by a series of weak Euro zone data recently.
The ZEW survey is an important indicator because it is a survey of about 275 German institutional investors and analysts who are asked to rate the relative 6-month economic outlook for Germany.
The data is important because Germany is Europe’s largest economy and is seen to be the engine of growth for the region.
The July index fell to 36.3 from June’s 38.5 reading. It missed forecasts for a rise to 39.6.
More clues for German growth prospects will come next week with the Ifo data.
Meanwhile, the ZEW index of euro zone economic sentiment improved to 32.8 in July from 30.6 in June, above expectations for a reading of 31.8.
A separate report showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 1.6 percent in June, unchanged from an initial estimate and in line with expectations.
EURUSD fell to a session low of $1.3050 from a pre-data high of $1.3073 at 11am Berlin time. However, the euro recovered relatively quickly and proceeded to rise to $1.3108.
The euro fell against the dollar after a disappointing report on the German ZEW economic sentiment. The data showed that analyst and investor sentiment in Germany was more pessimistic, mainly driven by a series of weak Euro zone data recently.
The ZEW survey is an important indicator because it is a survey of about 275 German institutional investors and analysts who are asked to rate the relative 6-month economic outlook for Germany.
The data is important because Germany is Europe’s largest economy and is seen to be the engine of growth for the region.
The July index fell to 36.3 from June’s 38.5 reading. It missed forecasts for a rise to 39.6.
More clues for German growth prospects will come next week with the Ifo data.
Meanwhile, the ZEW index of euro zone economic sentiment improved to 32.8 in July from 30.6 in June, above expectations for a reading of 31.8.
A separate report showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 1.6 percent in June, unchanged from an initial estimate and in line with expectations.
EURUSD fell to a session low of $1.3050 from a pre-data high of $1.3073 at 11am Berlin time. However, the euro recovered relatively quickly and proceeded to rise to $1.3108.
Related Posts: