There’s been a bit of good news and a bit of bad news out of Germany this morning. Bad news first: A group of German economists, dubbed the ‘wise men’ (which actually consists of four men and one woman) have cut growth forecasts for Europe’s largest economy for 2019.
While previously expecting growth of 1.5%, they’re now looking for growth of .8% this year, citing slower exports as the main driver and the potential for a chaotic Brexit as an additional risk to the outlook. Now for the good news: Sentiment in Germany isn’t as bad as it was expected to be. In this morning’s release of the Zew survey out of Germany, economic sentiment improved more than expected, printing at -3.6 versus the -13.4 from last month and the expectation for -11.
The net response so far in the Euro has been a mild move higher as prices remain around the 1.1350 area on the chart; begging the question as to whether or not the bullish move that sparked around the March NFP report is in the process of stalling-out. This area of current resistance connects to prior support that came into play in late-February.
Full article at DailyFX