Overview of the German ZEW survey
The ZEW will release its German economic sentiment index and current situation index at 9:00 am GMT at the EU session later today, reflecting the views of institutional investors for the next six months.
The overall index of economic sentiment should climb to 32.0 in May against 28.2 the previous month. At the same time, the sub-index of the current situation should reach -88.0 against -91.5 recorded last month.
How could they affect EUR / USD?
Optimism about the coronavirus vaccine has eased American-Chinese tensions and continues to reinforce the feeling of risk. The safe haven demand for the US dollar is therefore absent and helps support the renewed rise in the EUR / USD, as we head towards the exit of ZEW in Germany.
If the German data exceeds estimates, the shared currency could see a new higher leg and drive the EUR / USD to the level of 1.1000. A break above which would open the doors for a test of the highest monthly at 1.1017.
On a downward surprise, rates could reduce previous gains to test the 1.0900 bar. As of this writing, EUR / USD is trading at 1.0940, down 0.27% on a daily basis.
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About German ZEW
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the sentiment of institutional investors, reflecting the difference between the share of optimistic investors and the share of pessimistic analysts. Generally, an optimistic view is considered positive (or bullish) for the EUR, while a pessimistic view is considered negative (or bearish).