German economic sentiment advances, but slightly less than expected: 53 points in February. The current situation component beat expectations by jumping to 45.5 points. The all European number rose to 52.7 points.
EUR/USD is marginally lower, but not going too far. This is a small miss and the figure is still higher.
At the same time, Greece published inflation numbers: they showed a fall of 2.8% in prices, worse than expected. There is a stark example of the divide in the continent.
German ZEW Economic Sentiment was expected to enjoy a fourth consecutive month of gains in February, rising from 48.4 points in January to 55.4 now (preview here). The current situation component carried expectations for an advance to 30 points. The all-European number was predicted to advance from 45.2 to 51.3 points.
EUR/USD traded at around 1.1380 towards the publication, rising from the lows.
The German economy is doing well, as we’ve recently learned from the strong growth numbers. The export-oriented economy enjoys the weaker euro.
The ongoing Greek crisis dominates the news, with negotiations continuing in Brussels. Yesterday, talks reached an impasse and EUR/USD fell to lower ground. The ministers remain in Brussels.
In the US, the focus is on the FOMC meeting minutes tomorrow.
More: EUR Bear Market In The Waiting; Sell Rallies – Morgan Stanley.
In our latest podcast we feature an interview with Dan Blystone and update on Greece
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