BREAKING: EUR gains after beat in ZEW data

German ZEW economic research institute release a new set of its economic sentiment indices at 10:00 am GMT today. Data for March was expected to show an improvement in the headline Economic Sentiment index, with Current Conditions index deteriorating slightly.

Actual data turned out to be a positive surprise with headline Economic Sentiment index jumping from 19.9 to 31.7 and Current Conditions index improving from -81.7 to -80.5. EUR gained in a knee-jerk reaction following the release, but scale of the move was rather limited. European indices were little changed after the reading.

ZEW institute said in a commentary to the release that economic expectations for Germany are significantly improving and that over 80% of survey respondents expect ECB to cut rates in the next 6 months. Nevertheless, assessment of the economic situation remains at a very low level.

German ZEW indices for March

• Economic Sentiment: 31.7 vs 20.5 expected (19.9 previously)
• Current Conditions: -80.5 vs -82.0 expected (-81.7 previously)

Source: xStation5