German ZEW Preview: No chances for the euro

The German ZEW Survey, which measures sentiment among business in both, Germany and the Eurozone, is expected to have bounced in April, after collapsing in March to record lows, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The Economic Sentiment is expected at -43 in Germany, and at -38.2 for the whole Union. The assessment of the current situation in the EU’s largest economy is foreseen at -30 from -43.1 previously.”

“Even in the case of upbeat readings, it’s highly unlikely that business confidence will turn positive at this stage. Speculative interest has no reasons to buy the shared currency, as not only the economy is under pressure, but the Union is unable to find common ground to deal with it.”

“The market won’t be comfortable with below-forecast readings. Despite the FX board is all about the dollar’s demand, the EUR could be affected by a dismal sentiment report, regardless of how speculative interest is positioned on the greenback.”