German ZEW Economic Sentiment Index slumps to -53.8 in July

• German ZEW Economic Sentiment arrived at -53.8 in July vs. –28.0 previous.
• The ZEW Current Situation for Germany came in at -45.8 in July vs. -27.6 prior.
• EUR/USD defends 1.0000 on downbeat German and Eurozone data.

The German ZEW headline numbers for July showed that the Economic Sentiment Index slumped to -53.8 while missing estimates of -38.3.

Meanwhile, the Current Situation sub-index arrived at -45.8 in July vs. -34.5 expectations.  

The Eurozone ZEW Economic Sentiment Index stood at -51.1 in the current month as compared to the -28.0 previous reading and -32.8 expected.  

Key takeaways

“The current major concerns about the energy supply in Germany, the ECB’s announced interest rate hike and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook."

"The experts assess the current economic situation significantly more negatively than in the previous month and have further lowered their already unfavorable forecast for the next six months."

"Expectations for energy-intensive and export-oriented sectors of the economy have fallen particularly sharply, and private consumption is also assessed as significantly weaker.”

FX market reaction

The euro remains vulnerable to ZEW Surveys from Germany and Eurozone. EUR/USD was last seen trading at 1.0002, down 0.36% on the day.