Will the Euro strengthen or weaken today?
This morning we have the ZEW Survey for Germany – showing how optimistic (or pessimistic) German investors are about the economy. As this is a survey among investors and analysts, it does not have the same significance as the German IFO – which is conducted among businesses – and which we have on Friday. Nevertheless there will be some price action on Euro as this is released at 10am UK time.
The ZEW is expected to be up compared to September. While the Euro could benefit from a more positive outlook, we think a dip might be bigger from a disappointing survey.
The US and UK data release schedule (economic calendar) is thin and is therefore unlikely to have much impact today – that said we could see some position in late trading ahead of tomorrows raft of UK and US data.