(MENAFN– ecpulse) The Eurozone is expected to release first-tier macro data featuring ZEW sentiment data due later on Tuesday, as traders seek further signs of economic recovery in the second half 2014. Analysts expect both indicators to post sharp losses in August.
Later in the day, Germany’s ZEW Institute’s closely followed economic sentiment indices are likely to show a decline for the eighth consecutive month. Perceptions of current conditions and expectations for the future are likely to show deterioration.
The euro fell against its U.S. counterpart before the ZEW Center for European Economic Research`s confidence report due to be out at 09:00 GMT +3.
The ZEW data may also show that investor confidence in Germany, Europe`s largest economy, fell sharply this month. Market consensus called for the following numbers:
- Eurozone ZEW expectations probably deteriorated this month
- Germany ZEW current situation probably decline to 54.0 from 61.8 a month ago
- Germany ZEW expectations likely edged down to 17.0 from 27.1 in August
The sentiment in the euro-area is expected to have continued to fall amid ongoing political instability in Ukraine and the Middle East.
Earlier this month, ECB’s Governing Council voted on Thursday to maintain the main refinancing rate at a new record low of 0.15 percent.
The ECB, however, is accelerating plans to unleash fresh unconventional measures as the Eurozone`s recovery loses steam and the risk increases of a geopolitical shock from the Ukraine crisis.
The central bank seems to be waiting to gauge the effects of earlier measures to stimulate the economy and get a clearer picture of the impact of deteriorating relations with Russia.
On Thursday, economists expect second quarter Eurozone growth figures to show that Gross Domestic Product (GDP) expanded by a mere 0.1% in the three months to June, down slightly from 0.2% quarter-on-quarter growth in the first three months of the year.
German and French GDP figures are also scheduled for release on Thursday. Germany’s report may show that Europe’s largest economy stagnated in the second quarter.
Generally, a positive surprise about January ZEW sentiment will likely strengthen the euro. The EURUSD declined in Europe to trade at $1.33657 from an opening of $1.33840.
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.