EUR/USD: EUR shrugs off weak German ZEW survey – Scotiabank
Source Fxstreet
Germany’s ZEW index reflected a sharper than expected fall in current conditions and expectations in September, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Technicals remains bullish
“This index tends to be volatile, reflecting sentiment sometimes shaped by market volatility, but German investors are clearly concerned by signs of slowing growth. The EUR drifted back marginally from its intraday peak around the data’s release but remains comfortable trading above the 1.11 area.”
“The EUR’s progress through the ceiling of the downward-sloping consolidation range in development since the end of August suggests more gains in the near/medium term for spot. The range break out has triggered a bull flag pattern on the charts which suggests the recent uptrend in spot can resume.”
“The only caveat is that spot seems—so far—reluctant to push on higher towards 1.12. That is not too surprising, given the fundamental backdrop for markets this week. But it highlights the risk that a failure to develop gains risks dumping spot back to the lower end of the range in the upper 1.09s.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
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