- Germany’s ZEW Economic Sentiment Index dropped more than expected in May.
- EUR/USD remains unfazed near 1.0900 on the mixed ZEW surveys.
The German ZEW headline number showed that the Economic Sentiment Index deteriorated sharply in May, arriving at-10.7 from 4.1 in April, missing the market expectation of -5.5.
Meanwhile, the Current Situation Index improved to -34.8 from -32.5, bettering the market expectation of -37.5.
During the same period, the Eurozone ZEW Economic Sentiment Index worsened to -9.4 from 6.4, compared to the estimates of 8.2.
Key points
Indicator of economic sentiment has once again fallen sharply.
Financial market experts anticipate a worsening of the already unfavorable economic situation in the next six months.
German economy could slip into a recession, albeit a mild one.
Sentiment indicator decline is partly due to expectations of further interes rate hikes by the ECB.
Market reaction
The EUR/USD pair has paid a little heed to the mixed data, holding the higher ground near 1.0900, up 0.20% on the day.
