The latest data coming out of Germany has remained very positive.
Germany is enjoying current account surplus at 7.5% of the GDP, surplus is highest in the Euro zone (+€200 billion, non-seasonally adjusted, GDP growing at 1.6% YoY.
Today's Zew survey data affirmed the same as the Economic sentiment bounced back to 53 level, consecutive rise since it made low of -3.6 on October 2014. Sentiment for current situation improved to 45.5 far better than average market estimate of 3.2.
We believe this to have muted impact for the Euro, currently sub 1.14 in the event of current situation and even the immediate impact also was less market moving.
Simultaneously such positive data makes up pretty positive on German equity, DAX (currently just below 10, 900) in the coming days and bunds to outperform (10 year yield at 53 basis points). They look a lot cheaper at this euro valuation.
