- Prior 34.9
- Current conditions 22.4 vs 14.8 exp. Prior 10.0
That’s the highest since Feb last year
ZEW says;
- New year started with turmoil in capital markets
- Upcoming Greek election and SNB decision to abandon euro cap on franc led to strong market fluctuations
- This seems not to have impressed financial market experts with regard to expectations for German economy
- Instead, falling oil prices and a depreciating euro contributed to the further gain of the indicator
What a load of old flannel
EUR/USD agrees as it pops to 1.1615 on the release and is then chopped down to 1.1588
ZEW’s Fuest adds;
- That expected QE is already reflected in the price of the euro
- There are no explicit concerns about deflation
- SNB decision did not change expectations for the German economy
- Experts already expect that the ECB will decide on QE and they also expect a further depreciation of the euro over next 6 months
German ZEW 20 01 2015
