Euro (EUR/USD) Latest – German economic outlook weakened in August

Euro (EUR/USD) Latest – German economic outlook weakened in August

The economic outlook for Germany is deteriorating, according to the latest ZEW survey, showing “the sharpest drop in economic expectations in two years”. According to today’s report,

“Economic expectations are still likely to be affected by high uncertainty, which is driven by ambiguous monetary policy, disappointing business data from the US economy and growing concerns about an escalation of the conflict in the Middle East. Most recently, this uncertainty has been expressed in turmoil on international stock markets,’ comments ZEW President Professor Dr. Achim Wambach on the survey results.

ZEW Economic Sentiment Indicator – Expectations Deteriorate

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EUR/USD moved marginally lower against the US dollar but remains in a tight range in the short term. Initial support is seen at last Thursday’s low at 1.0881 and 50-day sma at 1.0883, while initial resistance at 1.0950.

Daily EUR/USD price chart

Retail trader data shows that 37.51% of EUR/USD traders are net-long, with the ratio of short-long traders at 1.67 to 1. The number of net-long traders is 2.42% higher than yesterday and 14.11% higher than last week, while the number of net-short traders is 0.42% lower than yesterday and 2.32% higher than last week.

We typically take a contrary view to crowd sentiment, and the fact that traders are net-short suggests that EUR/USD prices could continue to rise. However, traders are less short than yesterday and compared to last week. Recent changes in sentiment warn that the current EUR/USD price trend could soon reverse to the downside, despite traders remaining net-short.

EUR/GBP fell to a new one-week low on a combination of euro weakness and sterling strength. Earlier, data showed UK unemployment unexpectedly fell – from 4.4% to 4.2% – reducing expectations of a UK rate cut.

UK unemployment rate unexpectedly falls, major concerns resurface

After a four-month low last week, EUR/GBP turned lower and is now trading either side of an old area of ​​importance at 0.8550. Below here 0.8500 comes into focus. Short-term resistance is seen at 0.8580 and 0.8600.

EUR/GBP daily chart

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