German ZEW Economic Sentiment Index falls to 7.4 in November vs. 12.8 expected

• Germany’s ZEW Economic Sentiment Index dropped to 7.4 in November.
• EUR/USD keeps the red above 1.0600 after German and Eurozone ZEW surveys.

The headline German ZEW Economic Sentiment Index worsened to 7.4 in November from 13.1 reported in October, missing the expectations of 12.8.

The Current Situation Index slipped to -91.4 in the eleventh month of the year, as against October’s -86.9 readout. Data missed the anticipated –86.0 print.

The Eurozone ZEW Economic Sentiment Index arrived at 12.5 in November versus the October figure of 20.1. The market consensus was 20.5.

Key points

Economic expectations for Germany have been overshadowed by Trump’s victory and the collapse of the German government coalition.

Economic sentiment has declined – and the outcome of the US presidential election is likely to be the main reason for this.

More optimistic voices were heard in the last survey days, expecting economic prospects for Germany to improve with snap elections on the horizon.

Overall, what we’re currently observing is a very dynamic development of economic expectations.

Market reaction

The EUR/USD pair remains in negative territory after the downbeat German and Eurozone ZEW surveys. The pair is shedding 0.29% on the day to trade near 1.0620, at the press time.