ZEW Survey

The Euro-to-Dollar exchange rate led the Euro to outperform non-European currencies on Tuesday after Germany's ZEW survey surprised on the upside of expectations and as Italian political risks ebbed, although technical analysts warned the Euro's correction could have further to run. 

The Eurozone outlook darkened in October according to respondents in the latest Lebnitz Centre for European Economic Research (ZEW) survey, who flagged the coronavirus and uncertainty about the outcomes of Brexit trade talks and the U.S. election for more downbeat views on Europe's prospects. 

The Euro-to-Dollar exchange rate appeared to be swimming against a tide Tuesday as momentum ebbed from the market even after a the September ZEW survey, a widely observed barometer of sentiment on the Eurozone economy, surprised sharply on the upside. 

The German and Eurozone economic recoveries gathered steam  in August, according to the Leibniz Centre for European Economic Research's latest ZEW survey of institutional investors, the fifth consecutive month of explosive gains for the barometer of sentiment toward the bloc and its prospects for the next six months. 

The Euro was treading water Tuesday after overlooking a better-than-expected ZEW survey for June as currency markets appeared to focus instead on an increase in geopolitical tensions ahead of Thursday's European Council meeting, the highlight of the week for the single currency. 

The Euro was weaker in the face of a stronger Dollar on Tuesday but the outlook for the single currency may have brightened this week after the influential ZEW survey revealed what economists have described as "green shoots" that point to recovery in Europe's largest economy. 

The Euro was tipped for recovery on Tuesday after an influential survey of sentiment showed Eurozone investment professionals becoming much less pessimistic about the outlook for the single currency bloc's economy this month.

The Euro was on its back foot in the face of a strong U.S. Dollar and more negative economic reports Thursday, which continue to undermine the market's appetite for the single currency.

The Euro pared an earlier loss Tuesday after the influential ZEW Leibniz Centre for European Economic Research survey appeared to show the outlook for German businesses stabilising during January, after a torrid three-month period of deterioration. 

Survey of financial professionals recovers in August but remains low, external trade concerns main negative factor.

The outlook for German industry is brightening, albeit at a slower than expected pace, while prospects for Eurozone economic development have deteriorated. 

The Euro lost ground on Tuesday after a survey of financial professionals in the region showed a marginally more pessimistic assessment of the future outlook for the economy, whilst concerns  for German exports also weighed.