简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The latest ZEW economic sentiment reading ‘points to a significant deterioration in the outlook for the German economy’. And the outlook for the EU is just as bad.
German ZEW and EURUSD Price, Chart and Analysis:
German sentiment collapses as the economy deteriorates significantly.
EURUSD likely to come under downside pressure despite US dollar weakness.
Q3 2019 EUR and USD Forecasts andTop Trading Opportunities
Keep up to date with all key economic data and event releases via the DailyFX Economic Calendar
The latest EU and German sentiment indicators missed already lowly expectations and paint a very negative picture for the single-block and the single-currency, and it may get worse. The German headline reading is the weakest since May 2010 and the expectations reading is at the lowest level since December 2011.
According to ZEW President Professor Achim Wambach, the German data shows reveals “The ZEW Indicator of Economic Sentiment points to a significant deterioration in the outlook for the German economy. The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit place additional pressure on the already weak economic growth. This will most likely put a further strain on the development of German exports and industrial production”.
The provisional look at German Q2 GDP is released Wednesday and is expected to show the economy contracting on a q/q and a y/y basis. The daily EURUSD chart continues to trade around 1.1200 but with weak German data expected tomorrow and with Brexit still heading towards a no-deal, the single currency will remain capped and may re-test the recent lows.
Euro Price Outlook: EURUSD Rattled as Italian Government Fractures
EURUSD Daily Price Chart (December 2018 – August 13, 2019)
IG Client Sentiment data shows traders are 51.8% net-long EURUSD, a bearish contrarian bias. However current sentiment and recent changes give us a bullish EURUSD trading bias.
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on EURUSD – bullish or bearish? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
TALKING POINTS:
The British Pound and the Euro will be closely watching how Brexit negotiations unfold as the October 31 deadline approaches.
GBPUSD continues to extend its retracement higher with the British Pound pushing higher as UK Parliament moves closer toward preventing no-deal Brexit.
The British Pound is clinging on to its recent rebound from multi-year lows following the latest Brexit development which puts MPs in control of Parliaments agenda and reduces no-deal Brexit risk.