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ZEW data shows a better-than-expected outlook for the euro zone and German economies over the next 6 months. While the data for both readings remain in negative territory, the euro zone economic sentiment data came in at a -29.5 vs -43 previously, slightly elevating the euro against the USD, however, the pair is little changed. German ZEW economic sentiment printed at -34.3 vs -42 forecasted.
Economic sentiment in the euro zone and Germany have been on a downward trajectory since the massively negative print in March 2022, going from 54.30 to -39.30. The cause of the drop was indeed the Russian invasion of Ukraine with such close proximity to the eurozone, geographically and economically.
ZEW (Germany) Economic Sentiment
Source: Refinitiv, prepared by Richard Snow
The euro has struggled against the high yielding currencies like the US and Canadian dollars but has fared much better against the pound.
EUR/USD continues its daily range and trades slightly higher than before the release, however, maintaining the short-term upward direction.
EUR/USD 5 Min Chart
Source: TradingView, prepared by Richard Snow
— Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX