The Zew index, which records the pulse of the German locomotive, sends a discouraging signal for the economic fate of the Old Continent. In June, German investor confidence reached its lowest level in the last two years, reaching -9 compared to +3,1 in May. The relative sub-index slipped from 91,5 to 87,6, against expectations of 89,5.
Expectations are weighed down by the uncertainty of the financial crisis in Greece and the belief that the current German boom cannot sustain itself at current levels which are very high. In response to the index release, the euro promptly lost ground against the dollar and dropped to $1,4325, down about 20 basis points.
