The ZEW Indicator of Economic Sentiment for Germany saw a solid rise in March. The index rose 9.8 points to -3.6 from prior month’s -13.4 points. Consensus expectations were for the index to have come in at -11.
Although the indicator remains below the long-term average of 22.2 points, the expectations for the medium-term economic development are less pessimistic than they were a month or two ago. The current economic situation in the nation dropped by 3.9 points to 11.1 points from prior month’s 15 points.
The considerable rise in the ZEW economic sentiment index indicates that major economic risks are considered to be less dramatic than before, said ZEW President Professor Achim Wambach. The likely delay in the Brexit process and the renewed hope for a deal on the U.K.’s withdrawal from the EU seem to have risen more optimism among financial market experts.
“Progress made in the negotiations between China and the US to end the trade war between the two nations may also have contributed. Nevertheless, the ZEW Indicator of Economic Sentiment for Germany points to relatively weak growth in the first half of 2019”, said ZEW President Professor Achim Wambach.
Euro area’s financial market experts’ sentiment about the economic development of the euro area has also rebounded significantly, with the corresponding indicator rising 14.1 points to a current level of -2.5 points. On the contrary, the assessment of the current economic situation in the euro area saw a further fall, declining by 3.6 points to -6.6 points compared to the earlier month.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 23.5404 while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -105.125 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
