Germany’s ZEW survey for October delivered better-than-expected results. The current assessment reading softened – but less than expected – to 79.9 (from 79.4 last month) while the expectations component improved to -1.1 (from -11.4), also better than forecast. The data suggest clear improvement in sentiment as the ECB rate cycle (likely) peaks. This may be a prelude to a slightly better economic performance.

Intraday EUR gains have been capped around 1.0560/1.0565 resistance again but a firm close on Monday tilts technical risks towards a bit more pressure on the upper 1.05s and firm support on EUR dips to the 1.0500 area. 

A push through 1.0560 should allow the EUR to retest 1.06+.