ZEW Economic Sentiment

Measures Level of a diffusion index based on surveyed German institutional investors and analysts;
Usual Effect Actual > Forecast = Good for currency;
FF Notes Above 0.0 indicates optimism, below indicates pessimism. The ZEW survey is historically focused on the German economy, and Germany tends to lead the Eurozone economy, so this overall Eurozone outlook tends to be overshadowed by the German data released at the same time;
Why Traders
Care
It’s a leading indicator of economic health – investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity;
Derived Via Survey of about 350 German institutional investors and analysts which asks respondents to rate the relative 6-month economic outlook for the Eurozone;
Acro Expand Zentrum fur Europaische Wirtschaftsforschung (ZEW);

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