When is the German ZEW survey and how could it affect EUR/USD?

German ZEW Survey Overview

The ZEW will release its German Economic Sentiment Index and the Current Situation Index at 0900 GMT in the EU session later today, reflecting institutional investors’ opinions for the next six months.

The headline Economic Sentiment Index is expected to improve to 60.0 in July as against a 63.4 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -65.0 versus a -83.1-figure recorded last month.     

How could they affect EUR/USD?

The California shutdown and growing coronavirus cases worldwide continue to bode well for the safe-haven, the US dollar, limiting the upside attempts in EUR/USD near 1.1350. The focus now shifts to the German ZEW release for fresh near-term trading impetus.

Should the German data beat estimates, the shared currency could see a fresh leg higher and drive EUR/USD above 1.1350. A break above which would open doors for a test of the five-week highs of 1.1375.

On a downside surprise, the rates could drop back below 1.1300.  The reaction to the German data could likely be limited, as investors await the US CPI data for a fresh direction on the spot.

At the time of writing, EUR/USD trades at 1.1336, modestly flat on the day.

Key notes

EUR/GBP climbs to one-week tops, around mid-0.9000s

EUR/USD targets the June and July highs at 1.1374/1.1422 – Commerzbank

EUR/USD looks north but risk aversion could play spoilsport

About German ZEW

The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).