German Investor Sentiment ZEW Slips Unexpectedly

Although the fall was unexpected there is no clear indication it will change the overall forecast for the German Economy. Next week’s Ifo business survey will either confirm a downward trend, or dispel some fears as analyst await expectantly.

German investor sentiment has slipped unexpectedly this month as optimism about the recovery in Europe’s largest economy loses some of its fizz.

The Mannheim-based ZEW research institute said its economic sentiment indicator had fallen by 1.7 points to 56.0 points in October. Apart from an earlier drop in July, the ZEW index had been on a steady-upward trend since late last year and in September had reached the highest for three years.

Although the index remains well above its historical average of 26.7 points, the latest reading added to evidence that the momentum behind Germany’s economic recovery is diminishing.

Financial Times

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza