- German economic sentiment for August slumps.
- Euro steady against the US dollar, EUR/GBP slips.
The economic outlook for Germany is breaking down, according to the latest ZEW survey, showing ‘the strongest decline of the economic expectations over the past two years.’ According to today's report,
‘It is likely that economic expectations are still affected by high uncertainty, which is driven by ambiguous monetary policy, disappointing business data from the US economy and growing concerns over an escalation of the conflict in the Middle East. Most recently, this uncertainty expressed itself in turmoil on international stock markets,’ comments ZEW President Professor Achim Wambach, PhD on the survey results.
ZEW Indicator of Economic Sentiment – Expectations Break Down
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EUR/USD moved marginally lower against the US dollar but remains in a tight, short-term range. Initial support is seen off last Thursday’s low at 1.0881 and the 50-day sma at 1.0883, while initial resistance at 1.0950.
