The drop in the ZEW survey is ominous
The euro has fallen four days in a row and is poised for the lowest weekly close since May 2017. The EUR/USD chart itself isn't pretty. It's still above the intraday lows from two weeks ago but support is thin down to 1.04.
I'm starting to worry it could fall much further.
The economic data point that stands out for me this week is the German ZEW survey. The expectations component fell to -44.1 from -24.5. That's an astonishing tumble from an already-depressed level.
The ZEW has a great reputation as a leading indicator. It's a sentiment survey of banks, insurance companies and financial departments of selected corporations.
You can see how it foreshadowed the 2009 and 2012 recessions.
I'm absolutely stumped about why Germany's government isn't taking them money that it's being lent at -0.72% and stimulating the economy.
