ZEW institute May German economic sentiment index much better than expected

ZEW institute May German economic sentiment index has come in at 31.1, up from 13.0 in April, and much better than the median forecast of 20.

ZEW says optimism is supported by modest signs of recovery in the real economy. Sees more and more signs which indicate worst seems to be over. On the downside, ZEW sees worse to come on the unemployment front.

EUR/USD has extended it’s rally on the back of the news to a 1.3655 session high.