Economists forecast that the Ifo’s business climate index would climb from 105.7 in May to 105.9 in June, a modest increase but still a positive sign. The measure of expectations was predicted to rise from 101.6 to 102 while a gauge of the current situation was believed to have slipped from 110 to 109.6.
The estimates were largely based on the fact that German exports advanced by more than expected in April, while investor confidence jumped and the nation’s industrial production surged.
However, while the Ifo business climate index met expectations, the current assessment index was 0.2 lower than forecast.
But, this worse-than-anticipated result may be outweighed by the fact that the measure of expectations advanced by more than expected, hitting 102.5 in June.
Before the results were released Hanover-based economist Jens Kramer commented: ‘Compared with the rest of Europe, Germany’s economy is pretty strong and will remain solid for the rest of the year. What worries me are signs of weakness from China. If thus leads to a global slowdown, Germany as an export-oriented nation will surely suffer.’
Although the German central bank has stated that the German economy will post significantly stronger growth in the second quarter it has also intimated that the pace of growth is likely to slow as the year progresses.
Before the German data the Euro to US Dollar exchange rate was trading in the region of 1.3082
Other influential pieces of Eurozone data to watch out for in the days ahead include Wednesday’s German consumer confidence survey and French GDP, Thursday’s German employment figures and Eurozone business climate/industrial confidence/consumer confidence data and Friday’s German CPI/Retail sales figures.
Euro (EUR) Exchange Rates
As of 09:05 –
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3111 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8529 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4285 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6958 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3773 >