The EUR/USD has been quite volatile recently, although the pressure is on the upside, as the economy of the continent has been improving in Q2, due to the reopening after the winter lockdowns. Last Friday we saw a decline to 1.21, but yesterday the price turned bullish again, as the USD was declining across the board, which saw this pair climbing to 1.22, where the 50 SMA (yellow) was waiting on the H4 chart.
The price stalled there until today, when the Eurozone and German ZEW economic sentiment reports were released, showing a cool-off this month. The EUR/USD has retreated lower from there, but it’s not exactly running down.
ZEW Economic Sentiment – June 8, 2021
- June ZEW survey current situation -9.1 points vs -28.0 expected
- May current situation was -40.1 points
- Expectations 79.8 points vs 86.0 expected
- Prior was 84.4 points
- Eurozone expectations June 81.3 points
- May expectations 84.0 points
The headline reading is solid and shows a much improved picture of the German economy and investor sentiment, as the virus situation also improves.
EUR/USD Live Chart
The miss on the expectations reading is made to look uglier than it is in the headline, coming off the highs over the past few months. However, investors and analysts continue to expect a strong economic recovery in the next six months, according to ZEW.
Go to the news source: EUR/USD Retreats After the Cool-off in ZEW Economic Sentiment