Despite starting the week in a fairly strong position, the euro weakened yesterday after the German ZEW survey was released. This is the first survey that accounts for the impact of the coronavirus on the German economy.
The ZEW expectations for March came in at -49.5, down from 8.7 in February. This severely missed expectations of a -26.4 reading and is the largest ever fall recorded by the ZEW Institute since they began their survey in 1991.
This means that the German economy is now on red alert and experts are expecting a significant decline in real GDP growth.
Today, we’ll see Balance of Trade and inflation rate figures for the euro area.
