Before we talk about our expectations for changes in ZEW Survey – for German economic sentiment, It is important to start with the latest reading of the German Manufacturing PMI, Because of the usual correlation read for the two indicators as both indicators represent the economic outlook for the largest economies in the eurozone.
The manufacturing PMI for October 2019 was revised up by 0.2 from the initial reading to 42.1 from the previously reported initial reading of 41.9 and compared with 41.7 as the final reading of the index for last September.
This revise generally gives the market a positive tune, although the latest reading still indicates ten consecutive months of contraction in Germany Factories since the beginning of 2019, details of the PMI survey indicate that production has fallen at a slower pace coupled with a decline in new orders for the 13th consecutive month, albeit at a slower pace.
It is noticeable as well, The rate of employment decline in the sector accelerated to its fastest pace since January 2010, mostly due to a decrease in the number of temporary workers as per IHS Market reported.
At the same time, the survey shows the sharp decline in the prices of industrial inputs such as steel and plastic in the form of the fastest decline since 2016, which was translated into a clear decrease in the cost of production for the fourth consecutive month and the largest rate since November 2009.
Based on this slight improvement in the reading of the index, we can expect this improvement to continue during the remaining few months of this year, benefiting from the overall improvement in risk appetite.
👉 Want to make money automatically with Bitcoin and Cryptocurrencies without the risk of trading yourself? Are you ready for self-custody of your investment funds? Do you like the sound of regular consistent results and profitable performance? Tired of the forex and crypto scams, false promises and games out there designed to separate you from your hard earned funds? Stop everything! ETBOT is for you! With the ETBOT software, only YOU are in control of your investment funds. The software works using API Key connections that only YOU set up and control. The ETBOT service and mother company EndoTech has been making investors hundreds of percent a year in proven gains since 2012! They use the volatility of the Crypto market to trade long and short using breakout techniques and strategies powered by real Artificial Intelligence. This year so far ETBOT has made over 75% for clients since January 1st, 2020. If you are ready to leave the trading to the professionals and upgrade your monthly income, now is the time, head to ETBOT now and buy your subscription to get started. PS: ETBOT is a Profitable Forex/Crypto Trading Bot. 100% Verified and Recommended by Valforex.com.
Returning to Germany’s ZEW economic sentiment index, which recorded a slight drop of 0.3 points in October 2019, now stands at -22.8 points, this keeps the index well below its long-term average of 21.4 points.
This clearly confirms all the data from the PMI survey mentioned above, however, some positive expectations regarding trade tensions have emerged recently, which may affect the expectations of experts for the German economy in the reading of the index for the month of November, taking into account the recent stimulus from the ECB, which may bring a slight improvement in inflation expectations to the end of the year, So, I expect the November reading to be better than the previous reading for October.
NB: You can also use other recommended brokers and start making sustainable profit margins. Your time to make real profits starts with the bold step of signing up. What are you waiting for?
For those who do not know:
Germany’s ZEW Economic Sentiment survey measures analysts’ optimism about the expected economic developments over the next six months. The survey covers up to 350 financial and economic analysts. The indicator is designed to represent the difference between the percentage of optimistic analysts and the percentage of analysts who are pessimistic about the development of the economy.
Therefore, the ZEW confidence indicator appears on a scale from -100, which is mean all analysts expect the economy to deteriorate- to 100, which says all analysts expect the economy to improve. Therefore, logically, a value of 0 indicates that the number of optimistic analysts equals the number of pessimistic analysts.
Analysis Sponsored By Atfx.com
Help Us Fight Scams. Please Donate to Support Our Work. No Amount is too Little or too Big. Thank You..
February 8, 2019 By Ghazanfar
The phrase ‘Necessity is the mother of invention’ seems true for Iran. This is because Iran has unveiled its own...
February 8, 2019 By Ghazanfar
In spite of long bear market, Bitcoin transactions per day are increasing. Today the level of these transactions has touched...
February 4, 2019 By Ghazanfar
Although bear market in crypto world is extending, yet many fiat currencies are facing the threat of destabilization. This is...
February 4, 2019 By Ghazanfar
In spite of mix signals from the cryptocurrency world about the future of cryptocurrencies, many countries are planning to test...
February 3, 2019 By Ghazanfar
The idea of Bitcoin adoption as an international currency is not at all new. Over the years, many financial experts...
February 2, 2019 By Ghazanfar
Bitcoin’s entry into the longest ever bear market in history is one of the most burning issues of today. The...
Valforex.com will not be liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Trading Forex, Binary options and Cryptocurrencies involve high-risk and are not suitable for all investors. Online trading in general, may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity… Read More