By David Schutz, THE TAKEAWAY: ZEW survey beats expectations -> Eurozone inflation climbs -> Euro soars to session high German investor confidence rose in April for a fifth consecutive month, suggesting that economic recovery in Europe’s heavyweight is ever drawing closer. The Euro attained a fresh session high on the news after trading within a tight range during the day’s majority. Fueling the rise, t he Mannheim-based ZEW center said its monthlyindex of investor and analyst expectations increased to 23.4 from22.3 in March. The indexattempts to predict economic developments six months inadvance. The ZEW center addedthat economic conditions have stabilized, and said it generallyexpects additional positive developments out of Germany over the next 6months. The German economy hasresisted recession as ultralow unemployment levels bolster consumerspending and offset a slump ininternational demand. Even so, today’s outturn surprised somemarket players given recent concerns over the beleaguered Spanish economy . Meanwhile, a measure of Euro-area inflation rose unexpectedly today, further complicating the European Central Bank’s mission to coax CPI down below its 2% target rate. A hike in energy prices pushed the reading up to 2.7%, higher than the projected 2.6%.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.