German ZEW Survey results Expected On Tuesday

By Isaac Ndegwa January 15, 2017
1450937434369426_480_320The German ZEW survey is due on Tuesday 16th January and is so far the most awaited news of the first two days of this week’s trading. There is a lot of optimism in play as recent stats also show that the German trade surplus increased over November even as the rest of the Eurozone saw the unemployment rates remain at 9.8%

Positive results will remain a gem to the traders who want to remain bullish on the Euro as the Sterling pound had kept on showing more signs of weakness over the last trading week. The Sterling opened lower versus the dollar in this week’s trading while the Euro has on the other hand shown some resilience against the green buck.

Even with potential for further falls in the USD, we may expect the Euro to hold up well against the dollar if the ZEW survey posts good results while the GBPUSD will hinge towards the lower end of the range. The expected figure for the ZEW survey (current situation) is 65 while the most recent release showed 63.5.

On Tuesday of this week, Prime Minister May will give a speech regarding her approach to Brexit. This could have important implications for sterling and the speech will be analyzed closely. Just before the holidays, May told senior Members of Parliament that she would make a speech in the new year to share her plans and strategies to “forge a truly global Britain that embraces and trades with countries across the world.”

Volatility in GBP/USD is expected to increase ahead of the speech, as markets have become fixated on whether there will be a ‘soft’ or ‘hard’ Brexit. Over the weekend, there were reports that Prime Minister May will make immigration a red line in upcoming Brexit negotiations.

The EURUSD traded at 1.0616 while the GBPUSD traded at 1.2022 towards the close of the Monday Asian session.
By Isaac Ndegwa January 15, 2017

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