After the dollar got hit most of last week following the record U.S. current account deficit, coupled with violence in Iraq and Saudi Arabia, players are now looking to partially unwind their dollar shorts and await tomorrow's ZEW (economic sentiment) survey out of Germany,
Quotes about zew (5 Quotes)
Clearly the economic news we're getting at the moment is better than expected, part from the States but also from Europe with ZEW survey today. Nine days in a row is a very strong run, but the jury is still out as to whether economic recovery can become established.
A strong ZEW survey, combined with rising EU labor costs for the fourth quarter, due on Friday, should help support ECB rate expectations and the currency.
The ZEW indicator is at levels which previously have marked a high, and discussion will now start on whether the ECB will hike rates earlier than in March. This will put the front-end under pressure.
ZEW was a disappointment and it shows there's still problems in Europe, ... The market got ahead of itself in terms of how healthy Europe is, and we're now seeing the euro drop.