Even as the Greek debt talks have collapsed, the Euro was able to regain positive momentum, helped along with a better expected outcome in the release of the ZEW survey which reports on investor sentiment in Germany. The Euro had earlier weakened following the collapse of talks as the new Greek government seeks to obtain a new debt deal which is necessary in order to remain in the Eurozone. Strategists say that for the most part, investors are hopeful that the Troika and Greece will come to an agreement in the near term and that looking beyond this collapse there is still confidence that a resolution will be found.
As reported at 10:53 am (GMT) in London, the EUR/USD was trading at $1.13995, a gain of 0.3% and edging toward Monday’s peak at $1.1429. The EUR/GBP also bounced higher trading at 74.04 pence, still close however to last week’s multi-year low at 73.69 pence.
ZEW Surveys Provide Lift
In Germany, the ZEW survey which shows current business sentiment rose to 45.4, up from 22.4 and markedly better than the 30.0 reading expected. At 53.0, the reading for Germany’s ZEW outlook did improve from the last reading at 48.4, however, it failed to meet analysts’ expectations at 55.0. The Eurozone’s ZEW report, a reflection of investors’ optimism for the Euro area as a whole, rose to 52.7, up from 45.2 and beating analysts’ forecast of a rise to 51.3.