German ZEW economic sentiment index likely to have dropped slightly in August

The German ZEW index for the month of August is set to be released in this week and the recent market uneasiness about a possible deceleration in the German economy might possibly put the index to test, noted Wells Fargo in a research report. Even if the current situation index dropped a bit in July to 86.4 from June’s 88, the data on the German economy have continued to be relatively strong lately.

Therefore, a rebound in the August reading would help strengthen the notion that the German economy continues to be in a good shape, stated Wells Fargo in a research report. In the meantime, the ZEW expectations index has softened since June. Following a 20.6 reading in May, the index recorded 18.6 in June and 17.5 in July. This weakening possibly aided in making the case of a slowdown in the German economy.

Therefore, a rebound for this index in August would be a likely indicator for the German economy and the euro area economy. According to consensus expectations, the ZEW index is expected to have dropped to 85.3 in August.

The IFO business climate and expectations indices print is also set to be released in this week. The overall index had recorded a series high in July.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -3.205, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -81.176. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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