German ZEW Economic Sentiment Index leaps to 51.6 in March vs. 48.1 expected

• Germany’s ZEW Economic Sentiment Index jumped to 51.6 in March.
• EUR/USD holds gains near 1.0950 after German and Eurozone ZEW surveys.

The headline German ZEW Economic Sentiment Index jumped to 51.6 in March from 26 in February, beating the market forecast of 48.1 by a wide margin.

The Current Situation Index improved to -87.6 in the same period, compared with February’s -88.5. Data missed the estimated -80.5 figure.

The Eurozone ZEW Economic Sentiment Index came in at 39.8 in March versus 24.2 in February. Markets expected a 39.6 reading.

Key points

Economic expectations are improving considerably again in march, with a strongly increasing ZEW indicator of economic sentiment.

The brighter mood is likely due to positive signals regarding the future german fiscal policy.

Prospects for metal and steel manufacturers as well as the mechanical engineering sector have improved.

The sixth consecutive interest rate cut by the ECB means favourable financing conditions.

Market reaction

The EUR/USD pair remains well bid after the mixed German and Eurozone ZEW surveys. The pair is adding 0.25% on the day to trade near 1.0950, as of writing.