Euro Continues to Decline After ZEW Germany Report
EUR / USD slipped to 0.25 percent to 1.1766 in European session Tuesday (17 / Oct) this afternoon, after the German ZEW report. When this news is written, the pair has even continued the decline to the number 1.1757.
Weakening German Economic Sentiment
Germany's ZEW economic sentiment topped 17.6 points, well below expectations at 20.1 points. Meanwhile, the Euro Zone Final CPI remains unchanged at 1.5 percent, in line with expectations.
The report appears to be incompatible with a market that expects rapid progress in the German economy. This is evident by the softening of ZEW Economic Sentiment to 26.7, below the 34.2 estimate and weaker than the previous figure at 31.7.
Investors are more focused on German releases because the Euro Zone economy is fairly stable. In the inflation sector, the Euro Zone is still within the range of 1.5 percent. Despite being under a 2 percent target, the ECB is staying digadang will reduce the stimulus. However, ECB President Mario Draghi, had dismissed by saying that it will not raise interest rates in the near future. Draghi's speech tomorrow will be eagerly awaited by traders for clues on ECB monetary policy.
On the other hand, concerning the chaotic independence of Catalonia from Spain, the Spanish Prime Minister has called on the region's leaders to declare their independence explicitly. The Spanish government extended its response deadlines by next Thursday. If Catalonia does not provide clarity, then Spain will trigger Article 155 to dissolve the parliament of Catalonia.
http://www.seputarforex.com/euro-terus-merosot-pasca-laporan-zew-jerman-280628-11