German ZEW Economic Sentiment Index slides to -14 in April vs. +9.3 expected

• Germany’s ZEW Economic Sentiment Index tumbled to -14 in April.
• EUR/USD holds losses near 1.1350 after German and Eurozone ZEW surveys.

The headline German ZEW Economic Sentiment Index declined sharply to -14 in April from 51.6 in March, missing the market estimate of 9.3 by a wide margin.

The Current Situation Index improved to -81.2 in the same period, as against the March reading of -87.6. Data beat the expected -86 figure.

The Eurozone ZEW Economic Sentiment Index dropped to -18.5 in April from 39.8 in March. The market consensus was 14.2.

Key points

• Erratic changes in the us trade policy are weighing heavily on expectations in Germany.
• Not only the consequences the announced reciprocal tariffs may have on global trade, but also the dynamics of their changes, that have massively increased global uncertainty.
• Economic expectations for Germany and the eurozone reflect this development.

Market reaction

The EUR/USD pair remains in the red after the mixed German and Eurozone ZEW surveys. The pair is losing 0.07% on the day to trade near 1.0950, as of writing.