Europe’s strongest economy in the spotlight.

Germany’s ZEW Economic Sentiment and Current Conditions on Tuesday, February 20th, 2018 at 10:00 GMT.

Last week, the SPD (The Social Democratic Party of Germany) leader, Martin Shultz, resigned. This surprising move crushed Chancellor Merkel’s hopes of stitching together a coalition government.

With Merkel’s position at risk with the new elections just around the corner, will expectations for economic growth in the next 6 months be affected by the current political situation?

Last month, ZEW Economic Sentiment and Current Conditions data beat expectations, growing more than expected.

For this month, analysts anticipate that:

1. The German ZEW Economic Sentiment will drop to 17.8 from January’s reading of 20.4.
2. The German ZEW Current Conditions will drop to 89.8 from 95.2.

What do you think?

Will Germany’s Current Conditions and Economic Sentiment see a drop? Or will the ZEW data surprise traders again and send the EUR higher?

What are the ZEW Data?

The German ZEW (Centre for European Economic Research) publishes two important data reports: The Economic Sentiment Index and the Current Conditions survey.

This data gauges the six-month economic outlook from a survey of about 350 German institutional investors and analysts concerning the economy, inflation rates, stock markets and exchange rates.

Higher than expected readings should be taken as positive (bullish) for the EUR, whereas disappointing results could be taken as negative (bearish) for the single currency.