ZEW institute March German economic sentiment index -3.5, better than expected

ZEW institute March German economic sentiment index came in at -3.5 versus -5.8 in February, better than the median forecast of -8.0. The current conditions indicator came in at -89.4 versus -86.2 in February, pretty much in line with the median forecast of -90.0.

ZEW says ECB rate cut and lower prices for raw materials may explain the increased optimism. The think tank feels the bottom of the recession is likely to be reached this summer.

EUR/USD has rallied post release, presently up at 1.3010.