German ZEW Economic Sentiment Index rebounds to 13.1 in October vs. 10 expected
|- Germany’s ZEW Economic Sentiment Index improves to 13.1 in October.
- EUR/USD holds above 1.0900 after German and Eurozone ZEW surveys.
The headline German ZEW Economic Sentiment Index improved to 13.1 in October from 3.6 reported in September, beating the market consensus of 10.0.
The Current Situation Index, however, dropped to -86.9 in the tenth month of the year, as against September’s -84.5 readout. Data missed the estimates of -84.5.
The Eurozone ZEW Economic Sentiment Index came in at 20.1 in October versus the September figure of 9.3. The market forecast was 16.9.
Key points
Starting from a very poor assessment of the current situation, the economic sentiment for Germany has risen in the latest survey.
Contributing factors include the expectation of stable inflation rates and the associated prospect of further interest rate cuts by the ECB.
Positive signals are also coming from Germany’s export markets.
Economic expectations for the Eurozone, the USA, and China have also significantly improved.
The increased optimism for China is likely linked to the Chinese government’s economic stimulus measures.
These developments have probably also contributed to the rise in economic expectations for Germany.
Market reaction
The EUR/USD pair holds ground after the mixed German and Eurozone ZEW surveys. The pair is adding 0.03% on the day to trade near 1.0910, at the press time.
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