The euro jumped against the dollar after the German ZEW economic survey beat expectations, offering some relief to market sentiment and some optimism to the euro zone. Germany is Europe’s largest economy and so ZEW index is usually closely-watched.
The index rose unexpectedly in April to 23.4 despite a forecast for a decline to 20.0. This marks a fifth consecutive monthly gain. March saw a rise to 22.3.
EURUSD jumped after the data at 09:00 GMT from 1.3143 to 1.3171 within a minute before easing on profit taking.
German Bund futures hit a fresh session low of 139.90 after the data, down 49 ticks on the day.
However, despite the rise in the ZEW index in comparison to the previous month, The ZEW institute which complied the data said the data indicate economic expectations have stabilised.
Further positive developments in the economy during the next six months are expected.
The ZEW index was based on a survey of 275 analysts and investors and conducted between April 2 and April 16, ZEW said.
A separate gauge of current conditions rose to 40.7 from 37.6 in March. A reading of 35.3 had been forecast.