- Germany’s ZEW Economic Sentiment Index plummets to 19.2 in August – Impact on EUR/USD exchange rate.
- EUR/USD dips towards 1.0900 following disappointing German and Eurozone ZEW surveys.
The latest data reveals a significant drop in Germany’s ZEW Economic Sentiment Index, falling from 41.8 in July to 19.2 in August, well below the market expectations of 38.0.
Meanwhile, the Current Situation Index also worsened from -68.9 in July to -77.3 in August.
The Eurozone ZEW Economic Sentiment Index followed suit, registering at 17.9 in August, a sharp decline from the previous reading of 43.7 and missing the market forecast of 35.4.
Key takeaways:
– Germany’s economic outlook is deteriorating rapidly.
– This survey marks the steepest decline in economic expectations in the past two years.
– Economic expectations for the Eurozone, the US, and China are also showing significant declines.
– Industries heavily reliant on exports in Germany are expected to face challenges.
– Uncertainty in the global market is likely impacting economic expectations.
– Recent turmoil in international stock markets is a reflection of this uncertainty.
Market response:
The EUR/USD pair is under pressure following the disappointing German and Eurozone ZEW surveys, with a 0.14% decline to trade around 1.0915 at the moment.