Euro Breaking News: EUR/USD Dismisses Surprise ZEW Economic Sentiment Index

The ZEW economic sentiment index for Germany came out slightly higher than expected, almost doubling the shift from December. The news did not help the EUR much, as the currency fell from its pre-stat high of $1.14214 to a low of $1.13851 post-stat. The Euro is currently down 0.09% at the time of writing, weighing down the currency versus the dollar.

After the news, the European session is dominated by ZEW Economic Sentiment figures. Germany’s ZEW Economic Sentiment Index rose from 29.9 to 51.7 in January, while the Eurozone Economic-Sentiment Index jumped from 26.7 to 49.4. Both numbers exceeded economists’ forecasts, which had been for a higher jump. But the ZEW Current Conditions Index disappointed, slipping from -7.4 to -10.2 in January, with analysts expecting a decline to -8.2 in Germany.

The ZEW Economic Sentiment Index for Germany and the Eurozone was released yesterday. Both the German and Eurozone Economic Sentiment Index jumped in January, indicating a solid economy. However, the German ZEW Economic-Sentiment Index slipped, as economists had expected. The euro’s broader-based ZEW Current Conditions Index, meanwhile, disappointed, dropping from 8.2 to -9.2. The ZEW Economic-Sentiment is now at a three-month low.

While the Euro remains under pressure against the US dollar, it shows signs of retracing from the previous lows. The ZEW Economic Sentiment Index in Germany topped expectations at 51.7. The ZEW Economic Sentiment in the Eurozone rose from 26.8 to 49.4 in January. Despite the unexpectedly positive ZEW economic sentiment figures, the ZEW Current Conditions Index disappointed with a decline to -7.8 in January. Moreover, the ZEW Economic Sentiment Index for Germany deteriorated from -8.2.

ZEW Economic Sentiment figures remained in focus early in the European session. The German ZEW Economic Sentiment Index rose from 29.9 to 51.7, while the Eurozone’s rose from 26.8 to 49.2 in January. The rises were far better than analysts expected. The ZEW Current Conditions Index missed its expectations, with a jump of -0.7 in Germany to -9.8.

On Tuesday, EUR/USD continues to struggle against the US dollar after mixed figures for the Eurozone and Germany. Despite mixed economic sentiment, the EUR/USD remains under pressure against the US dollar. As of writing, the EUR/USD is trading at 1.1396. In the past 24 hours, the EUR/USD has been weaker than the US dollar. A few other major countries reported higher than expected ZEW economic sentiment figures, which have contributed to the currency’s recent decline.

Earlier on Wednesday, the ZEW Economic Sentiment Index for Europe showed that a surprise in the ZEW Economic Sentiment Index is unlikely to impact EUR/USD for the foreseeable future. At this point, however, the Euro is likely to remain under pressure against the US dollar for a while longer. A decline in the currency would be a sign of a weakening economy.

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