German ZEW Shows Increase in Confidence

Euro zone confidence rises

The German ZEW is showing a significant rally today in economic sentiment. This economic data is surprising — and heartening — after recent losses. It appears as though some confidence in the economy is returning, and that is providing some impetus for gains today. Action Forex reports on the German ZEW:

All those actions came to bolster the confidence reading heavily, where the German ZEW Survey rallied to the highest since three years, due to the ongoing improvements in the export levels and interventions. The German ZEW Survey economic sentiment rallied to 56.1 levels in August from the previous 39.5, along with the current situation improved to -77.2 levels from the previous -89.3 levels; also the sixteen nations ZEW survey economic sentiment inclined also to 54.9 levels form the previous 39.5.

Clearly, the measures that the European Central Bank have taken have proved somewhat effective. And some are thinking that perhaps the ECB was right to take things a little slower than other central banks.

At any rate, the German ZEW is helping the euro in forex trading against the U.S. dollar. With confidence on the rise, it is likely that we will see some improvements in the euro as it draws support from the largest economy in its currency zone.