020 7898 0500The German ZEW economic sentiment index is a survey of up to 300 experts from banks, insurance companies and financial businesses and, as such, is seen as a leading indicator for the state of the German economy. The latest results were released yesterday and came in below expectations at 17.4 in December. Chief among the concerns is the ongoing Brexit uncertainty and the fact that German coalition talks are yet to be resolved.
The euro didn’t have all that great a day, falling as it did against sterling and the dollar. One wonders if what has been a bit of a remarkable year for the single currency could end on a slightly sour note. However, it wouldn’t be at all surprising if the euro managed to retrace its losses in the run up to Christmas. Having said this, the European Central Bank are set to call a press conference on Thursday and, as President Mario Draghi likes a weak euro, he could strike a dovish tone and cause further euro weakening.
Today we will have the German inflation figure which is expected to jump from 1.6% to 1.8%, and we will also see the employment and industrial production figures for the eurozone.
