The European traders anticipate The German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment to determine the sentiment of German institutional investor. Above 0 indicates optimism while below 0 indicates pessimism. It’s a leading indicator of business conditions. The reading is concluded from survey of about 350 German institutional investors and analysts.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
The analysis predict a future reading of 25.20.
The Eurozone countries have been showing steady economic activity even as other countries such as the United States and Great Britain have begun to soften. This difference in economic health may serve to support the euro’s rally over the past several weeks. German ZEW will kick off a week full of economic releases out of the Eurozone including CPI, industrial production, and trade balance. If these numbers can continue to come in line with market expectations, euro just may continue to rally.