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Economic Sentiment for August Improved in Europe, Despite the Softening Economy

Posted Tuesday, September 15, 2020 by
Skerdian Meta • 1 min read

The economic rebound looked to be going pretty well in Europe during the first two months after reopening, but it started softening in July, and it softened even further in August, as recent economic data from the Eurozone has shown. However, the economic sentiment keeps improving, despite threats of more lockdowns. The ZEW sentiment improved in Germany and the Eurozone once again in August, as shown below.

ZEW Economic Sentiment Report

  • German ZEW survey expectations 77.4 points vs 69.8 expected
  • Prior survey expectations 71.5 points
  • Eurozone Zew expectations 73.9 points vs 64.0  prior
  • ZEW says stalled Brexit talks and rising COVID-19 cases could not dampen the positive mood
  • Negative outlook for the banking sector reveals fears of a rising number of loan defaults in the coming six months
Optimism is growing, but will expectations meet reality? The banking sector is a little more sanguine on what could lie ahead. At 1.1886, the EUR/USD was barely moved by the data. All eyes are on the Fed now, with a quiet data slate ahead.
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