When are German ZEW surveys and how could they affect EUR/USD?

German ZEW surveys Overview

The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index at 0900GMT in the EU session later today, reflecting institutional investors’ opinions.

The headline economic sentiment index is seen edging slightly lower to 15.0 in August after a 17.5 reading registered in July. While the current situation sub-index is also expected to tick lower to 85.5 versus 86.4 booked previously.

How could affect EUR/USD?

A positive surprise in the ZEW surveys may offer fresh impetus to the EUR bulls, sending the EUR/USD pair back above 1.18 handle. However, if the readings disappoint, the rate could extend the corrective slide towards 1.1750 levels.

Haresh Menghani, Analyst at FXStreet noted: “Technically, the pair has broken through a short-term descending trend-channel and hence, remains poised to resume with its prior appreciating move. Sustained move beyond 1.1830-35 area would reinforce the bullish bias and lift the pair immediately towards 1.1880 horizontal resistance. A follow through buying interest might now lift the pair beyond the 1.1900 handle towards its next hurdle near 1.1965 level en-route the key 1.20 psychological mark.”

“On the flip side, the descending trend-channel resistance break-point, near the 1.1800 region, now becomes immediate support to defend. Failure to hold the mentioned support could drag the pair back towards the 1.1760-55 region and any further weakness should now be limited near 1.1730-25 horizontal support,” Haresh added.

Key notes

Eurozone: Downside risk to ZEW data - TDS

ZEW economic sentiment seen deteriorating slightly in August – Morgan Stanely

About German ZEW Surveys

The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).