FXstreet.com (Barcelona) - The ZEW survey on economic sentiment showed deteriorated confidence in the economy from investors for Germany, the engine of the Euro-Zone. Economic sentiment fell to 47.2 in January from 50.4 in December, and the Current Situation survey also declined to -56.6 from -60.0 over the past two months.
The ZEW survey, published by the Zentrum für Europäische Wirtschaftsforschung, also indicated a drop in economic sentiment for the Euro-Zone which fell to 46.4 in the month of January from 48.0 during the closing month of 2009. The market had expected sentiment to hold steady in January.
The euro has fallen about 100 pips from a 1.4415 session high as the pair broke below Monday's low at 1.4330, to reach a fresh 7-day low at 1.4320 so far after the release of the disappointing data.
In related news, construction output for the Euro-Zone declined 1.1% for the month of November extending October's 0.6% contraction. In yearly terms, construction output fell 8.0% in November from 7.7% in the previous month.