German ZEW Economic Sentiment Index Jumps to 47.5 in June, Beats Forecast

German ZEW Economic Sentiment Index Soars to 47.5 in June, Crushing Forecasts

Germany’s ZEW Economic Sentiment Index surged to 47.5 in June, significantly outperforming the market forecast of 35 and marking a sharp rise from 25.2 in May. This robust increase reflects rising investor confidence in the German economy and adds momentum to the broader Eurozone recovery narrative.

Current Conditions Also Improve Sharply

In addition to the positive sentiment, the Current Situation Index rose to -72 from -82, beating the anticipated figure of -74. While still in negative territory, the improvement signals that economic conditions in Germany are gradually stabilizing.

Eurozone ZEW Index Follows Suit

The Eurozone ZEW Economic Sentiment Index also spiked to 35.3 in June from 11.6 in May, surpassing expectations of 23.5. The widespread improvement across the Euro area indicates a cohesive uptick in business outlooks and financial market confidence.

EUR/USD Reaction: Stable Above 1.1550

Following the release of the ZEW data, the EUR/USD pair held firm above the 1.1550 level, suggesting that traders are pricing in reduced recession risks and growing optimism in the Eurozone’s economic trajectory. The euro’s performance may remain supported if data momentum continues.

Looking Ahead

The ZEW data adds to the bullish case for the euro and could influence ECB rate expectations in the coming months. Market participants will now turn their focus to upcoming inflation prints and PMI data to confirm the trend.