(MENAFN– ecpulse) A widely followed index of German business optimism is expected from the euro-area later on Tuesday, amidst the mounting fears over continued geopolitical tensions in Ukraine.
Investors will keep an eye on developments in Ukraine amid fears the country is sliding into civil war. Pro-Moscow rebels on Sunday claimed poll victory amid fraud and double-voting allegations.
Voters in Ukraine’s two easternmost regions, the Donetsk and Luhansk regions, about 15 percent of the Ukrainian population, held referendums on Sunday on whether they approved of independence.
Euro-area’s closely followed ZEW indicator of economic sentiment will be released on Tuesday. The ZEW Center for European Economic Research`s confidence report due to be out at 09:00 GMT.
The ZEW data may also show that investor confidence in Germany, euro-area’s largest economy ticked higher in May. Market consensus called for the following numbers:
- Germany ZEW current situation probably rose to 60.5 from 59.5 a month ago
- Germany ZEW expectations likely edged down to 40.0 from 43.2
- Eurozone ZEW expectations probably advanced
Meanwhile, earlier this month, ECB’s Governing Council voted to maintain the main refinancing rate at a new record low of 0.25 percent. While President Mario Draghi promised to take needed actions if the outlook if needed.
Improving economic sentiment in Europe’s largest economy is a proof that Germany is getting stronger. Generally, a positive surprise about May’s ZEW sentiment will likely strengthen the euro, as a better-than-forecasted confidence data could offer more support to the single currency to extend gains.
Euro gained over dollar so far today, last trading at $1.37619 after hitting a session high at $1.37651 and falling to a session $1.37528. The pair opened at $1.37565.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.