Investor's soften expectations for adjustments from ECB - Scotiabank

Analysts at Scotiabank explained that the ZEW investor sentiment figures were stronger than expected, with a fresh record high in Germany’s current situation index and gains in the expectations indices for both Germany and the euro area.

Key Quotes:

"Preliminary PMI’s are scheduled for release ahead of Thursday’s ECB.

Market sentiment appears to be shifting ahead of Thursday’s policy decision, as investors soften their expectations for any major adjustments to forward guidance.

Risk reversals are moderating and EUR remains vulnerable on the basis of potential adjustments to record long speculative positioning."