After last week’s better-than-forecast confidence indicators out of the United States, similar reports out of the euro zone now seem to be coming into focus. Tomorrow’s release by ZEW is forecast to show a deep contraction in the region’s economic outlook. Speculators appear to be taking cues from such reports and going short on the region, stoking the flames of the EUR’s current value crisis.
Should tomorrow’s ZEW report on Germany come in as poorly as anticipated, there is a strong likelihood that regional investors will flee risk and move more strongly towards the US dollar (USD). The correlated economic sentiment report on the broader euro zone carries similar implications and traders would do well to anticipate a sharp increase in risk aversion should tomorrow’s data be as dismal as many expect it to be.
Read more forex trading news on our forex blog.
Other relevant articles you may like
Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
