EUR – German ZEW Report Not An Obstacle

The EUR gathered additional strength on Tuesday and this happened even as a rather disturbing German ZEW Economic Sentiment report came across the wires. The EUR gained versus the USD and continued to show that some investors have pushed aside fears of Sovereign Debt concerns for the time being. The German ZEW Economic Sentiment reading turned in an outcome of 28.7, far lower than the estimate of 48.7, and significantly worse than the previous reading of 45.8. Nonetheless the EUR and European equities continued to show some backbone and achieved a good day of trading. Europe will release CPI data today and the numbers are expected to match last month’s results. The EUR appears to be under the ‘spell’ of investors with risk appetite and its bounce off of its low water marks has raised eyebrows. Talk about the debt risks that hover over Spain and Greece can still be heard, but for the moment it does appear that the concept of contagion has been pushed to the side.

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