Way lower than median forecast of 42.0.
EUR/USD back below 1.2200.
ZEW says:
- Financial market experts expect German economic recovery to weaken towards end of year
- Economic sentiment weakened by uncertainty about future developments of debt crisis
- Current recovery is still fragile
- Fiscal policy is well-advised to implement consolidation measures, but not until 2011
- Weakening in sentiment is significant
- Improved current conditions explain part of weakening in sentiment, as more difficult to improve from better current level
- Uncertainty about situation, especially in Spain, part of weakening German sentiment
- Rumours about problems in Spain financial markets impact sentiment negatively
- Decline in sentiment is biggest since October 2008
- Weakening in sentiment not a shock, this is not really a bad assessment of economy, but a moderation in mood
