• German ZEW Economic Sentiment arrived at 31.7 in November, down from 22.3 previous.
• The ZEW Current Situation for Germany came in at 12.5 in November vs. 21.6 in October.
• EUR/USD extends bounce to retest 1.1600 despite mixed ZEW data.

The German ZEW headline numbers for November showed that the Economic Sentiment Index unexpectedly improved to 31.7 from 22.3 previous while beating estimates of 19.0.

Meanwhile, the Current Conditions sub-index dropped to 12.5 in November as against 21.6 recorded in the previous month and 18.0 expectations.  

The Eurozone ZEW Economic Sentiment for November rose to 25.9 for the current month as compared to the 21.0 previous. 

Key takeaways

“Financial market experts are more optimistic about the coming six months. “

“For Q1 2022, experts expect growth to pick up again and inflation to fall both in Germany and the Eurozone.”

FX market reaction

The euro extended its bounce from session lows of 1.1580 despite the mixed ZEW Surveys, as EUR/USD now looks to recapture 1.1600.

The spot was last seen trading at 1.1597, up 0.09% on the day.