German ZEW indices for April were released today at 10:00 am BST. Data turned out to be mixed - expectations index missed expectations by dropping from 13.0 to 4.1 (exp. 15.6) while the current conditions index improved from -40 to -32.5 (exp. -46.5). ZEW Institute noted in a commentary to the release that there is still a lot of uncertainty in the financial markets and that it may cause banks to be more cautious with loans. On top of that, ZEW economists see high inflation and restrictive monetary policy as weighing on the economy.
German ZEW indices for April
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- Current Conditions: -32.5 vs -40.0 (-46.5 previously)
Market reaction was muted - EUR pulled back slightly but scale of the move on EURUSD did not exceed 0.1% in the first minutes following the release while European indices, like for example DE30, dipped in a knee-jerk move before recovering and trading higher.
EURUSD dipped following mixed ZEW data (orange circle) and is pulling back after a failed attempt at breaking above the 38.2% retracement of a recent short-term upward impulse. Source: xStation5
