German economic sentiment index forecast to rise

NEW YORK (Forex News Now) – ZEW, the Centre for European Economic Research, is due on Tuesday to publish its monthly index on German economic sentiment, in one of the major realtime forex news events affecting the euro today.

The report is expected to show a rise in the index to 3.8, up from 1.8 the previous month, according to major online FX trading news outlets. A reading of above 0.0 indicates optimism.

The institute is scheduled to release the report at 10:00 A.M., GMT; as such the data is likely to have an impact on currency market trading today.

It will be released simultaneously with the index on European economic sentiment, which is expected to drop from 13.8 to 10.3.

According to EUR/USD analysis, a higher-than-expected rise in German economic sentiment could lift the currency pair toward short-term resistance around the Nov. 23 high of 1.3628.

But should the data fail to meet those expectations, EUR/USD could push downward toward short-term support around the Dec. 6 close of 1.3309.