German ZEW Economic Sentiment Index rebounds to 25.2 in May vs. 11.9 expected

• Germany’s ZEW Economic Sentiment Index bounced back to 25.2 in May.
• EUR/USD consolidates recovery gains above 1.1100 after German and Eurozone ZEW surveys.

The headline German ZEW Economic Sentiment Index rebounded to 25.2 in May from -14 in April, beatimh the market consensus of 11.9 by a wide margin.

The Current Situation Index eased slightly to -82 in the same period, as against the April reading of -81.2. Data beat the estimated -77 reading.

The Eurozone ZEW Economic Sentiment Index came in at 11.6 in May from -18.5 in April. The market expectations was -3.5.

Key points

• Expectations are brightening.
• With a new government in place, some progress in the tariff disputes and a stabilising inflation rate, optimism has increased.
• Outlook has improved in particular for banking, automobile, chemical, metal, machine and steel sectors.

Market reaction

The EUR/USD pair defends gains after the mixed German and Eurozone ZEW surveys. The pair is adding 0.17% on the day to trade near 1.1105, as of writing.