The ZEW indicator soared back to May levels at 34.9 points above the 20.8 forecast.
The ZEW (Zentrum fur Europaische Wirtschaftsforschung) Indicator of Economic Sentiment for Germany gains 23.4 points in December 2014. Increasing for the second consecutive time, the index now stands at 34.9 points (long-term average: 24.4 points), the highest reading since May 2014.
EURUSD traded well on the news up from 1.243 to reach up to 1.254 over the course of the day to date [2.30pm GMT].
ZEW President Professor Clemens Fuest says, "Confidence in the German economy seems to be slowly returning among the financial market experts surveyed by ZEW. This increase is related to favourable economic conditions such as the weak euro and the low crude oil price. The recently published German export figures already show a positive trend. However, we should be aware that the current optimism is fuelled by factors that might change even over the short term."
The ZEW statement notes, “The assessment of the current situation in Germany is improving as well. Growing by 6.7 points, the index now stands at 10.0 points. The financial market experts’ sentiment concerning the economic development of the Eurozone is also improving. The sentiment indicator for the Eurozone has increased by 20.8 points to a reading of 31.8 points.”
The ZEW survey asks the opinions and ratings of 275 German institutional investors and analysts on relative 6-month economic outlook for Germany. As Germany is the leading country in terms of supporting the euro at present, this latest data will be seen as positive for the Eurozone.
Economic data also showed the German sentiment to Europe as a whole in the Europe ZEW Economic Sentiment where the latest monthly figure saw a leap to 31.8, beyond expectations of 20.1 and the previous figure of 11.0.
MT4 chart: EURUSD
Trade forex and indices CFDs on STOCK.com with full training given to all clients