Latest data released by ZEW - 13 August 2019
- Prior -1.1
- Expectations -44.1 vs -28.0 expected
- Prior -24.5
- Eurozone expectations -43.6
- Prior -20.3
Those are some torrid figures as the headline falls to its weakest level since May 2010 while German expectations tumble to their weakest level since December 2011. ZEW notes that:
"Indicator of economic sentiment points to a significant deterioration in the outlook for the German economy. The most recent escalation in the US-China trade dispute, the risk of competitive devaluations, and increased likelihood of a no-deal Brexit places additional pressure on the already weak economic growth. This will most likely put further strain on the development of German exports and industrial production."
The release here isn't really impacting the euro but it does feed into overall weaker sentiment in Q3 and following tomorrow's Q2 GDP report (which should show that the German economy contracted), risks of a technical recession has certainly risen.
