The index of economic sentiment in Germany fell, dropping eur / usd to 1.29

The index of economic sentiment in Germany collapsed in September. According to the ZEW, the indicator lost 18.3 points, buried in the negative territory to -4.3 from 14 months earlier. In the fall affected the stagnation of industrial production in the country, as well as quite a significant drop in orders in the industry. Interviewed experts do not expect further growth of capacity utilization until the end of the year. Nevertheless, the indicator assessment of current conditions shows a very strong divergence from expectations. In September, he added another 15.6 points to 59.9.
t should be noted that neither the size of the divergence, no such mixed trends are not uncommon on this indicator. More than two years can be maintained growth in the current level of the situation despite the fact that the economic mood is seriously deteriorating. Example of mid-2007 tells us that such high values of the indicator current estimate for a while may even have a positive impact on the expectations, but it is unlikely this can be seen as a sustainable trend. Behaves similarly indicator of economic sentiment for the entire euro zone, with the only difference being that he managed to cling to positive territory, showing the level of 4.4 compared with 15.8 a month earlier. As a result, this created a strong downward pressure on the euro, dropping a pair of 1.29 to 1.2830.

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