As market participants expect investor confidence in Germany to weaken for the fourth consecutive month in August, the data is likely to drag on the economic outlook, which could spark a selloff in the euro as market participants weigh the prospects for future growth.

Trading the News: German ZEW Survey

Why Is This Event Important:

However, as European policy makers hold an improved outlook for the region and expect the recovery to gather pace throughout the third-quarter, and unexpected rise in the ZEW survey could lead the EUR/USD to retrace the sharp decline from the previous week as growth prospects improve.

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