Together with the IFO we are going to cover as our next indicator, the German Zew is one of the most important to be watched in Europe as it brings high volatility levels for the single currency and opportunities for the short to medium term for scalping the currency pairs. This is typical for volatility environments and such an environment appears every time the Zew is released.
This is a survey of about 275 German institutional investors and analysts and they are asked to respond questions relative to current economic conditions and to rate the future six months economic outlook for Germany. Any changes in the actual vs the forecast number brings volatility on anything that is related to the euro currency, so traders are watching this release carefully.
The most important things to take into consideration when looking at the German Zew indicator are:
- release date: on the second or third Tuesday of the current month;
- release time: 09:00 GMT during the London trading session;
- first tier data;
- actual > forecast = positive for currency;
- actual < forecast = negative for currency.