FX.co ★ Eurozone Investor Morale Drops to 11-Month Low

The ZEW Indicator of Economic Sentiment for the Euro Area dropped sharply by 47.9 points in March 2026 to -8.5, its lowest level in 11 months and far below market expectations of 24. Confidence was severely undermined by the escalating conflict in the Middle East, which continues to threaten prices and disrupt supply chains across Europe. In March, 44.1% of surveyed analysts expected economic activity to remain unchanged, 32.2% anticipated a deterioration, and 23.7% expected an improvement. At the same time, the indicator assessing the current economic situation fell by 16.3 points to -29.9, while inflation expectations soared by 78.9 points to 79.