Definition: The ZEW Indicator of Economic Sentiment is based on a monthly survey conducted by the Centre for European Economic Research (ZEW) to measure economic sentiment among German financial professionals.
Description: The ZEW Indicator is based on an investor confidence survey given to German analysts and investors. The participants are asked to give their opinion on the current economic climate and the future direction of the economy. The reading is based on the ratio of optimistic to pessimistic responses. If the majority of participants are optimistic, the reading will be above zero. If the response is more pessimistic, the reading will be below zero.
Influence: The ZEW Indicator is used to evaluate the prospects of the German economy. A positive reading indicates a strengthening of the euro.
Market Impact: Medium
Released: On the third or fourth Tuesday of each month at 16:00 GMT
Source: Centre for European Economic Research (Germany)