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 higher to 20.0 in October after a 17.0 reading registered in September. While the current situation sub-index is also expected to improve to 89.0 versus 87.9 booked previously.

How could affect EUR/USD?

A positive headline reading may rescue the EUR bulls, sending the EUR/USD closer to 1.1800 levels. However, if the readings disappoint, the rate could drop back towards mid-1.17s.

Jim Langlands at FX CHarts noted: “EurUsd was choppy but has finished the day looking a little bit heavy, closing towards the bottom end of the day’s 1.1780/1.1820 range. The ZEW, EU CPI and the US Industrial Production will be the drivers today, but with the short term momentum indicators looking a bit soft we might expect further downside momentum, possibly towards 1.1700.  The topside looks capped at 1.1820 and selling rallies is preferred.” 

Key notes

EUR/USD headed to 1.1750 on political uncertainty, ZEW eyed

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).