The German ZEW Economic Sentiment indicator dropped from 62 to 61.7 points. It was expected to tick up from 62 to 63.4 points, extending its gains on high ground and reflecting optimism for the German economy. The all-European number carried expectations for a rise from 68.3 to 70 points. This less important one surprised by rising to 73.3 points. The small miss in the headline German figure weighs on the euro.
EUR/USD was pressured to the downside towards the publication, trading at around 1.3540, below the 1.3550 battle line. It slides after the release to 1.3530.
Another important business survey comes from IFO, which is sometimes considered Germany’s No. 1 think tank. Nevertheless, the early release from ZEW gives it added weight. The euro sometimes feels German releases more than all-European numbers.
Support lies at 1.3515, and more serious resistance is at 1.3625. For more, see the EURUSD forecast.
