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EUR/USD slips near 1.1570 after German ZEW survey and risk jitters

Germany’s ZEW current situation fell to -61.1 in August, while Fed hike odds for the next meeting eased to 36.6% from 48.4% a week earlier.

Reported · Written up by our desk · Major Pairs

EUR/USD weakened during European trading on Tuesday, after three straight days of gains, slipping to around 1.1570 as the euro stayed under pressure following fresh German survey data, FXStreet reported. Germany’s ZEW Survey, current situation, came in at -61.1 in August versus expectations of -68.8 and July’s -77.6, while economic sentiment rose to 34.2, beating estimates of 30.0 and the prior reading of 26.3. In a separate measure for the eurozone, ZEW economic sentiment improved to 31.4, above forecasts of 25.4 and the previous 23.4. FXStreet also linked the move to broader crosscurrents, with the US dollar supported by safe-haven demand amid escalating US-Iran geopolitical tensions. The outlet cited remarks by President Donald Trump that he does not plan to renew the expiring Iran agreement, while also noting that expectations for Federal Reserve tightening have cooled. According to FXStreet, CME FedWatch showed the probability of a Fed rate hike at the next meeting falling to 36.6%, from 48.4% a week earlier, after weaker July nonfarm payrolls and modest US consumer inflation. The outlet added that US Treasury yields rose sharply, with MUFG/BTMU noting the 30-year yield was at about 5.32% and up roughly 25 basis points since the July 29 FOMC meeting.

Latest closeEUR/USD 1.157 ▲0.4%

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