The German ZEW survey of financial sector experts came in weak today, implying a moderation in investor confidence in the first quarter of 2018. After hitting a series high in January, the current situation index fell for the second straight month, albeit remaining well above the range seen last year.
The fall in the survey’s expectations index was marked, falling the most since the Brexit referendum to the lowest level since September 2016 and well below the long-run average. The current conditions index often acts as a good guide to what to expect from the Ifo business climate indices and GDP growth, noted Daiwa Capital Market Research in a report.
“However - similar to the euro area consumer confidence index - those indicators signaled a stronger rate of economic expansion in Q4 than the actual outturn (0.6%Q/Q). And with the degree of caution implied by the ZEW expectations index perhaps shared by many households and businesses, GDP growth in Q1 might again fall short of rates implied by the more contemporaneous business climate indicators”, added Daiwa Capital Market Research.
At 19:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bearish at -109.32, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 118.281. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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