German ZEW Economic Sentiment Index declines to 41.8 in July vs. 42.5 expected
|- Germany’s ZEW Economic Sentiment Index tumbles to 41.8 in July.
- EUR/USD keeps its range at around 1.0900 after the mixed German and Eurozone ZEW surveys.
The headline German ZEW Economic Sentiment Index dropped sharply from 47.5 in June to 41.8 in July, missing the market expectations of 42.5.
The Current Situation Index, however, improved from -73.8 in June to -68.9 in the same month. The market forecast was for -74.3 in the reported period.
The Eurozone ZEW Economic Sentiment Index came in at 43.7 in July, lower than the June reading of 51.3. The data missed the estimates of 48.1.
Key points
The economic outlook is worsening.
For the first time in a year, economic expectations for Germany are falling.
The fact that German exports decreased more than expected in May, the political uncertainty in France and the lack of clarity regarding the future monetary policy by the ECB have contributed to this development.
Market reaction
The EUR/USD pair is unfazed by the mixed German and Eurozone ZEW surveys. The pair is almost unchanged on the day at around 1.0900, at the press time.
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