Economic sentiment in Germany eased in May. The ZEW Indicator of Economic Sentiment dropped 5.2 points to -2.1 points in May 2019, lower than the long-term average of 22.1 points. Over the same period, the assessment of the economic situation in Germany has rebounded by 2.7 points, with the corresponding indicator rising to a current reading of 8.2 points. The production and exports’ development in the country as well as Eurostat’s most recent flash estimate of GDP growth in the euro area in the first quarter of this year increases hope that the German economy has grown more strongly than expected in the first quarter.
“The decline in the ZEW Indicator of Economic Sentiment shows that the financial market experts continue to expect restrained economic growth in Germany for the next six months. The most recent escalation in the trade dispute between the USA and China again increases the uncertainty regarding German exports – a key factor for the growth of the gross domestic product,” said ZEW President Professor Achim Wambach.
Meanwhile, the financial experts’ sentiment about the euro area’s economic development also recorded a fall. The indicator came in at -1.6 points, 6.1 points below the reading from the previous month. On the contrary, the indicator for the current economic situation in the euro area rose 6.2 points to -7 points in May. The economic outlook for the euro area also continues to be rather subdued.
At 12:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bullish at 136.989 while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -26.4909 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
