Release Explanation: The Zentrum fur Europaissche Wirtschaftsforschung (Center for European Economic Research) report measures investor sentiment. “The indicator reflects the difference between the share of Analysts that are optimistic and those that are pessimistic for the expected economic development in the region over the next six months. For example, 60% Optimistic and 40% Pessimistic will lead to a read of +20,” Trade Team said. Trade Desk Thoughts: The Zew Economic Sentiment indicator for Germany improved again in April, for the sixth consecutive month, reaching 13.8 points. The index gained 16.5 points in April, from one month earlier. The index recorded a positive value for the first time since July 2007

The sentiment indicator is positively affected by the government stimulus packages, which are increasingly effective. Furthermore, low inflation rates support private consumption. According to the financial market experts, the economic outlook for the United States has improved, too. In addition, there are some slightly positive impulses from other countries such as China.

Economic expectations for the Euro-zone increased in April by 18.3 points. The respective indicator now stands at 11.8 points, but the indicator for the current economic situation in the euro zone dropped by 2.3 points to minus 93.0 points.

Forex Technical Reaction:
Immediately after the release, the euro spiked 30-pips. Since the new trading day began, the euro gained 50 pips against the dollar, but traded flat against the pound.