Argus FX: Forex Daily Disappointed Germans In a surprise, the ZEW sentiment survey among German financial market professionals on their economic outlook fell significantly from 61.8 to 44.3. According to journalists, the main reason for the disappointment were the sanctions on Russia and their negative impact on German exports. Historical experience with the ZEW survey also suggests that the drop in the stock market in recent weeks negatively affected the survey result. While the drop is significant, the value around 44 still corresponds to a moderate expansive economy. Nevertheless, European stocks - in particular German stocks – and the euro declined after the release. The German 2 year benchmark bond yield dropped below 0% and the ten year reached a new all-time low. On the same day US bond yields rebounded from recent lows, which provide another reason for the euro to stay under depreciation pressure versus the USD. We expect EURUSD to approach our three month forecast of 1.32 soon. Thomas Flury strategist, UBS AG Join us for MORE!!! bit.ly/1lE2lZg
Posted on: Wed, 13 Aug 2014 06:30:46 +0000
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