• Germany’s ZEW Economic Sentiment Index advanced to 47.1 in May.
• EUR/USD continues to fluctuate below 1.0800 after the sentiment data.

The headline German ZEW Economic Sentiment Index improved to 47.1 in May from 42.9 in April. This reading came in above the market expectation of 46.3.

Similarly, the Current Situation Index rose to -72.3 from -79.2, surpassing analysts' estimate of -75.

The Eurozone ZEW Economic Sentiment Index arrived at 47 in May, compared to 43.9 in April and the market expectation of 46.1.

"Signs of an economic recovery are growing, bolstered by better assessments of the overall Eurozone and of China as a key export market," the ZEW Institue said in its press release. "The increased optimism is reflected in particular in the sharp rise in expectations for domestic consumption, followed by the construction and machinery sectors."

Market reaction

EUR/USD showed no immediate reaction to these data and was last seen trading little changed on the day at 1.0785.