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 Desk Thoughts: The Zew Economic Sentiment indicator for Germany improved again in February, for the fourth consecutive month, reaching -5.8 points. The index gained 19.40 points in February, from one month earlier.

The considerable improvement of the indicator might partly be attributed to the second economic stimulus package of the German government.

However, the assessment of the current economic situation in Germany worsened again in February. The corresponding indicator dropped by 9.1 points to -86.2 points.

 Economic expectations for the euro zone increased in February by 22.1 points. The respective indicator now stands at -8.7 points. The indicator for the current economic situation in the euro zone decreased by 6.3 points to -91.0 points

Forex Technical Reaction: Immediately after the release, the euro spiked 40-pips. Since the new trading day began, the euro has fallen 150 pips, near TheLFB S3 (1.2640). Against the pound, the euro fell 100 pips today.