The economic sentiment in Germany as well as in the whole eurozone improved significantly this month. But that failed to give a noticeable boost to the euro, which was moving in a range in the second half of the Tuesday’s session.
The ZEW Indicator of Economic Sentiment for Germany climbed to -3.6 in March from -13.4 in February. That is compared to the average forecast of -11.0. ZEW President Professor Achim Wambach commented on the result:
The significant increase in the ZEW Indicator of Economic Sentiment shows that major economic risks are considered to be less dramatic than before. The possible delay in the Brexit process as well as the renewed hope for a deal on the UKâs withdrawal from the EU seem to have given rise to more optimism among financial market experts. Progress made in the negotiations between China and the US to end the trade war between the two nations may also have contributed. Nevertheless, the ZEW Indicator of Economic Sentiment for Germany points to relatively weak growth in the first half of 2019.
The indicator for the whole eurozone jumped to -2.5 from -16.6. Analysts had predicted just a mild improvement to -15.1.
EUR/USD performed better than other euro-crosses, rising from 1.1335 to 1.1357 as of 18:54 GMT today. EUR/JPY edged up a bit from 126.32 to 126.49. EUR/GBP traded about flat at 0.8555 after falling to the daily low of 0.8533 earlier.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.
