Home » Currency Note » Currency Note » Currency Note EUR » EUR: German ZEW economic sentiment index beats expectations

The eurozone will be thankful for small mercies at the moment, with a raft of data showing its economy is struggling at present. Yesterday, the German ZEW economic sentiment index unexpectedly rose by 2.5 points in January to hit -15.0 – much better than the -18.4 the markets had expected. However, it is possible that the reading has much to do with potentially negative factors, such as a no-deal Brexit and weak growth in China, already being anticipated. It would be remiss to ignore the fact that the reading is still firmly in negative territory and is well below the long-term average of 22.4 points.

The situation was worse in the eurozone as a whole, as although the ZEW figure nudged up to -20.9 this month from -21 the previous month, it was still below expectations of -20.1. 33.5% of the analysts surveyed expected the economic situation to get worse in the coming six months which is far from encouraging. Of course, this can quickly change, especially if the UK can agree the best route forward for Brexit and the US and China reach a deal to end the trade war.

Today is relatively quiet, although we will see the flash consumer confidence reading for January. The figure is expected to worsen to -6.5 from -6.2 the previous month. How different things are in the eurozone from this time last year. It does help show that nothing can be banked on and chickens should never be counted until they have hatched.

Find out how we can help you

Let us know a little more about your upcoming currency exchange needs. We aim to take the uncertainty away by providing guidance on which services suit your individual requirements. You can then rest, assured your money is not at the mercy of the currency markets.

Protect against risk

Avoid losing money and protect against currencies moving against you.

Dedicated trader

Dedicated currency trader working with you to get the best value for your money.

Secure and efficient transfers

Secure, quick and efficient transfers. Authorised by the FCA.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Keep up to date

Get regular, jargon-free currency market updates delivered directly to your inbox.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Refer a friend or business

Recommend our services to your friends, family or colleagues and earn great rewards.