Investing.com - German economic sentiment rose more than expected in January, while the current conditions index hit a record high, bolstering optimism over the strength of the motor of the euro zone economy, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 20.4 this month from December’s reading of 17.4. Analysts had expected the index to increase to 17.8 in January.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Additionally, the current conditions Index rose to 95.2 this month from 89.3 in December. That compared to expectations for a smaller increase to 89.8 and was the highest level since the survey begun to be elaborated in December 1991.
Meanwhile, the index of euro zone economic sentiment increased to 31.8 in January from 29.0 a month earlier. Consensus was looking the index to rise to 29.7.
After the report, , EUR/USD was trading at 1.2248 from around 1.2240 ahead of the release, EUR/GBP was at 0.8779 from 0.8777 earlier, while EUR/JPY changed hands at 135.57 compared to 135.50 ahead of the data.
Meanwhile, European stock markets were trading higher. The benchmark Euro Stoxx 50 gained 0.40%, Germany's DAX advanced 0.83%, France’s CAC 40 rose 0.14%, while London’s FTSE 100 traded up 0.29%.