| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 09:00 | Eurozone | ZEW Economic Sentiment | July | 51.3 | 48.1 | 43.7 |
| 09:00 | Germany | ZEW Survey - Economic Sentiment | July | 47.5 | 42.5 | 41.8 |
EUR traded flat against other major currencies in the European session on Tuesday as the mixed findings of the German ZEW survey did not change markets' bets on the European Central Bank's rate path.
The latest survey by ZEW showed a steeper-than-anticipated decline in economic sentiment in Germany, the Eurozone’s largest economy. The ZEW indicator of economic sentiment fell to +41.8 points in July from 47.5 in June. This represented the first drop in the index in a year, which pushed it down to a four-month low. Economists had forecast the gauge to slip to 42.5 in July. Meanwhile, the assessment of the current economic situation in Germany slightly improved. The corresponding index rose to -68.9 in July from -73.8 in June. This marked the highest level in a year and was better than economists’ forecast of -74.3.
Additionally, the ECB’s bank lending survey revealed a modest improvement in loan demand in the second quarter of 2024 even as credit standards were broadly unchanged at tight levels. The euro-area banks reported a further decline in demand for loans from firms and an increase - the first one since 2022 - in demand for loans from households. The ECB said that improving housing market prospects, consumer confidence and spending on durables positively supported demand from households and stressed that banks expect net demand to rise across all loan segments in the third quarter.
Today’s reports did not change markets’ ECB rate expectations. They continue to see no move at the ECB’s policy meeting on Thursday, and overall price in 48 basis points (bps) of decreases this year.