The headline ZEW  number is slightly below expectations, but not too bad, and the accompanying numbers are actually above predictions. The all European number jumps to 62.4 points, above expectations. The “current situation†component jumps to 55.1 points, above expectations.
Headline inflation remains at -0.3% y/y for February, but core inflation is up from 0.6% originally reported to +0.7% now, providing some hope for recovery.
EUR/USD ticks up, but doesn’t go anywhere fast.
The ZEW German economic sentiment for March was expected to advance from 53 to 58.9 points. The all European figure carried expectations 58.2 points. The “current situation†component was predicted to rise to 50 points.
The final inflation report for February was expected to confirm the fall of 0.3% in headline CPI (still outright deflation) and a core CPI value of +0.6%, both are year over year figures. The employment change for Q4 was also published at the same time.
Here is the preview:Â EUR/USD: Trading The German ZEW Economic Sentiment
EUR/USD flirted with 1.06 before the publication, trading at slightly higher ground than beforehand, but still way down in the bigger picture.
Tension is growing towards the all important Fed meeting tomorrow. Janet Yellen and her colleagues are predicted to remove the “patience†wording from the statement, paving the way for a hike in rates. Follow a live coverage of the event.
More: Keep Buying The USD; EUR/USD Set To Break Below Parity – RBS
