The ZEW surveys printed yesterday confirmed the poor reception of the US-EU commerce deal within the EU. The ‘expectations’ gauge in Germany is again to 35, within the eurozone to 25, each the bottom since Might, ING’s FX analyst Francesco Pesole notes.
EUR/USD’s bullish case is stronger after US inflation report
“Nevertheless, markets aren’t giving the surveys an excessive amount of weight, and pricing for the ECB December assembly has crept nearer to -10bp from -15bp final week. We proceed to see this pricing as too conservative and a possible vulnerability for the euro transferring on. However that’s unlikely to play out over the subsequent couple of weeks and needs to be overshadowed by the Fed story.”
“EUR/USD’s bullish case is stronger after yesterday’s US inflation report. Nevertheless, a break above is perhaps delayed till after the Trump-Putin assembly on Friday.”
