Euro Slammed After Worse-than-Expected ZEW Expectations Survey

Talking Points:

• German’s ZEW Expectation’s Survey 46.6 in Mar versus 55.7 in Feb
• Report Reflects Waning Economic Expectations
• Euro Resiliency Continues After Yesterday’s downgrade of Headline CPI

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German economic expectations worsened in March 2014 as the ZEW Indicator of Economic Sentiment fell for the fourth consecutive month to 46.6 (52 consensus and 55.7 in February). Economic expectations for the Eurozone also lost ground as the indicator fell from 68.5 to 61.5 in March.

The survey weighed heavily on the euro, but the dip was short-lived. According to DailyFX Strategist Ilya Spivak, this is not surprising after yesterday’s downgrade of headline CPI – a far more direct indicator for monetary policy – failed to yield a meaningful response.

EUR/USD 5min Chart - March 18, 2014

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-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to [email protected].

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