Breaking: EUR/USD refreshes 34-month low on German Feb ZEW Economic Sentiment big miss
|
- German ZEW Economic Sentiment arrives at 8.7 in Feb. vs. 21.5 expected.
- Eurozone ZEW Economic Sentiment came in at 10.4 in Feb. vs. 30.0 expected
- EUR/USD refreshes 34-month lows but holds above 1.0800.
The German ZEW headline numbers for February showed that the Economic Sentiment Index dropped to 8.7 versus 21.5 expectations and 26.7 last.
While the sub-index Current Conditions figure arrived at -15.7 in February versus -10.3 expected and -9.5 booked previously.
ZEW President Professor Achim Wambach noted: “The feared negative effects of the Coronavirus epidemic in China on world trade have been causing a considerable decline of the ZEW Indicator of Economic Sentiment for Germany. Expectations regarding the development of the export-intensive sectors of the economy have dropped particularly sharply. Besides, the end of 2019 and the beginning of 2020 saw a worse-than-expected development of the German economy. Both the downward revision of the assessment of the economic situation and the downturn in expectations show clearly that economic development is rather fragile at the moment.”
Meanwhile, the Eurozone ZEW economic sentiment for February stood at 10.4 vs. 30.0 expected and 25.6 last.
FX Implications
The shared currency met fresh supply on downbeat German data release, with EUR/USD now renewing a 34-month low at 1.0822.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.