German ZEW Economic Sentiment Index rebounds to 15.7 in December vs. 6.2 expected

• Germany’s ZEW Economic Sentiment Index jumped to 15.7 in December.
• EUR/USD holds losses below 1.0500 after German and Eurozone ZEW surveys.

The headline German ZEW Economic Sentiment Index rebounded to 15.7 in December from 7.4 in November, beating the market forecast of 6.2.

The Current Situation Index dropped to -93.1  in the final month of the year, as against November’s -91.4 readout. Data missed the expected -92.6 reading.

The Eurozone ZEW Economic Sentiment Index came in at 17.0 in December versus 11.6 in November. The market consensus was 12.2.

Key points

Economic outlook is improving.

Experts still expect further interest rate cuts for the coming year.

Experts appear to assess the recent rise in inflation as a temporary phenomenon.

Market reaction

The EUR/USD pair remains unperturbed by the mixed German and Eurozone ZEW surveys. The pair is losing 0.22% on the day to trade near 1.0487, at the press time.