Latest data released by ZEW - 18 February 2020
- Prior -9.5
- Expectations 8.7 vs 21.5 expected
- Prior 26.7
- Eurozone expectations 10.4
- Prior 25.6
The euro is down to session lows after the report here with EUR/USD now at 1.0822, though still within a 16 pips range on the day. That said, the readings here are rather poor - especially the drop in expectations/outlook - but owes much to coronavirus fears.
ZEW says that investor expectations fell on the feared negative effects of the coronavirus epidemic on world trade and expectations regarding the development of export-intensive sectors have dropped particularly sharply.
This basically just reaffirms the fragility of hopes of a recovery in the euro area to start the year and I reckon as long as virus concerns continue to reverberate across the market, that should continue to weigh on the single currency until we get more clarity.
