Euro Strengthens Further, Ignoring Weak ZEW Report
The euro remains steady versus US dollar. The EUR/USD pair is trading at 1.1396 level, having gained 0.36%. After losing ground across the board since early-October, the single currency broadly stabilized for a second consecutive week, gaining ground against major currencies as hopes for a resolution to the Italian budget deficit saga have increased.
German and Eurozone ZEW Economic Sentiment indices both improved in December, but still posted sharp declines. German ZEW Economic Sentiment index increased to -17.5 in December from -24.1 in November, compared to the forecast for a reading of -25.0. The sub-index current conditions figure fell to 45.3 versus 55.8 expected and 58.2 seen previously. Meanwhile, Eurozone ZEW Economic sentiment index increased to -21.0 in December from -22.0 in November. Analysts had expected the index to fall to -23.2.
On Thursday, the European Central Bank meets. It is expected to keep the forward guidance and rates unchanged and to announce the end of the purchase program.