German ZEW data indicates a positive outlook
(Kitco News) - German ZEW survey expectations for January jumped to hit 51.7 vs expectations of 32.0 the previous reading was 29.9. The current conditions were relatively poor printing at -10.2 worse than the estimates of -8.8.
In the report, the think tank said the economic outlook has improved considerably with the start of the new year. They added that the phase of economic weakness from the fourth quarter of 2021 will soon be overcome. The ZEW said the main reason for this is the assumption that the incidence of covid-19 cases will significantly fall by early summer. Lastly, the report noted, “The more positive economic expectations include the consumer-related and export-oriented sectors and thus a large part of the German economy.”
Prior to the data release, a poll of economists said that the ZEW’s economic sentiment index is set to rise to 32.0 after last month’s small decline to 29.9. The current conditions indicator is forecast to continue its slide with a decrease to -7.5 from -7.4 in December. For comparison, this reading started the fourth quarter at 21.6.
There was not too much of a reaction in EUR/USD the pair is hovering just under 1.14 trading -0.11% lower on the session. The DAX however has been struggling for most of the session and this comes with negative risk sentiment across all the major indices. The German index is now down -1.25% on the session and looks to be heading into of the middle of the range on the daily chart.