FX.co ★ Eurozone Investor Morale Higher Than Expected

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 11.3 points to -9.1 in May 2026, outperforming market expectations of -20. This increase indicates an improvement in sentiment, as markets continue to factor in the possibility of a swift resolution to the Iran conflict. In May, 51.1% of analysts anticipated no change in economic activity, 29% expected a deterioration, and 19.9% forecast an improvement. The assessment of the current economic situation also strengthened, with that index climbing 1.6 points to -41.4, while inflation expectations fell sharply by 13.7 points to 65.3.