Latest data released by ZEW - October 12

  • Outlook 22.3 vs 24 expected
  • Prior 26.5

Going into the meeting the question is whether confidence would continue to wane in Germany. Supply chain issues, low gas storage, and surging energy costs are all difficult headwinds not just for Germany, but Europe as a whole.

A worse reading as those risks continue to weigh more stomgly on the eurozone. Supply chain bottlenecks blamed by ZEW and EURGBP seeing some weakness now. This should help the EURGBP lower as the bond yield spread between the EU and the UK widen.