The German ZEW Economic Sentiment disappointed with a drop to 46.6 points. The current situation component is at 51.3 points and the all-European figure dropped to 61.5 points. The headline figure was expected to drop for another month, to 52.8 in March from 55.7 in February. The Current Situation component carried expectations for a rise from 50 to 52 points. The all-European ZEW survey was also forecast to drop from 68.5 to 67.3 points. It is important to note that all these figures, which are above 0, represent improving conditions.
EUR/USD edged lower before the publication, getting closer to 1.39. The pair was already close to 1.3950 during this week. The pair is now under 1.39.
1.3895 serves as support, followed by 1.3832. Resistance appears at 1.3950, followed by the round number of 1.40. For more levels, analysis and lines, see the euro dollar forecast.
At the same time, the euro-zone released the trade balance figure for January, which was expected to show a surprlus of 13.9 billion after 13.7 billion in December (before revisions). This also fell short of expectations with a surprise drop to only 0.9 billion in the non-seasonably adjusted number.
This is how the drop looks in the chart:
Earlier, the German Wholesale Price Index dropped by 0.1%, worse than a rise of 0.2% predicted.
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