Germany: ZEW Economic Sentiment improves sharply to 55 in December vs. 46 expected

• Economic Sentiment in Germany and EU surged higher in December.
• EUR/USD struggles to gain traction despite upbeat ZEW Survey. 

The latest ZEW Survey from Germany showed that the Economic Sentiment improved sharply to 55 in December from 39 in November and surpassed the market expectation of 46 by a wide margin. On a negative note, the Current Situation declined to -66.5 and came in slightly worse than analysts' estimate of -66.

Finally, the Economic Sentimentiment for the EU climbed from 32.8 to 54.4 in December. 

"The announcement of imminent vaccine approvals makes financial market experts more confident about the future," ZEW said in its publication. 

Market reaction

The EUR/USD pair struggled to capitalize on the upbeat report and was last seen trading at 1.2121, where it was up only 0.1% on a daily basis.