EURUSD to advance further in case of a solid recovery of the ZEW index – Commerzbank

What is of great interest today is whether the German ZEW index will be able to support the Euro a little bit more. Solid data could allow the shared currency to enjoy further gains, economists at Commerzbank report.

Additional support for the Euro?

“A significant recovery of the index could be interpreted as a sign of reversal. It could then also confirm the view amongst market participants that the ECB can implement its signalled rate cycle as restrictively as it is clearly suggesting to. I could therefore imagine that against the background of the current Dollar weakness such a signal might provide additional support to the Euro.

“I would not be surprised if the Euro was able to appreciate further short-term in case of a solid recovery of the ZEW index.”