The main release from the eurozone yesterday was the German ZEW economic sentiment index which had been expected to slide even further in November. Last month, the reading came in at -24.7 and it was forecasted to drop to -25, but it actually came in at -24.1. The figure is not all that much to write home about, but it still shows improvement.
It was a different story for the eurozone’s respective figures, which came in at -22.0 from -19.4 the previous month. It was much worse than market expectations of -17.3 and is the weakest reading since July 2012. Put simply, analysts are expecting economic activity in the eurozone to worsen in the next six months. The other headline release was the German inflation rate which came in as expected at 2.4% in October from 2.2% the previous month.
Today we will see the German GDP growth rate for the third quarter of 2018. There are reasons to believe that the German economy didn’t perform at all well last quarter and analysts have predicted growth will slide to 1.3% from 2% the previous period. We could see some euro weakness if the actual figures are close to that. We will also see the GDP growth rate for the eurozone, as well as the employment change and industrial prediction figures.
