Germany IFO - Business Expectations

Description

Released by the CESifo Group, the IFO Expectations Index captures current business conditions and future expectations in Germany. The indicator is derived from a survey of 7,000 executives in manufacturing, construction, wholesaling and retailing. The survey asks respondents to assess their current business conditions and future outlook.
Latest Release: 18-12-2014 09:00:00
Next Release: 25-10-2013 08:00:00
Source:CESifo Group

Sterling is consolidating Thursday’s gains after hitting a fresh two-year high versus the euro. The surge in Cable was prompted by Carney's remarks, which while overall quite balanced spelled out that a rate hike is "getting closer." Carney's comments contrasts with Draghi's "risk of doing too little outweigh risks for doing too much" speech this week.

The GBP/USD is consolidating around 1.6300, and is looking increasingly likely to be set for a period of broadly directionless trade in the low-to-mid 1.60s. Despite an economy that is robust, the interest rate differentials between the pound and the US are remaining stable. This also contrast with interest rate differentials between the UK and the Euro zone which is now widening even further.

Sentiment in Europe continues to fall, which was reflected again Friday. German GfK consumer confidence dropped to 8.3 in the October reading from 8.6 in September. This was a sharper than expected decline and likely reflects not only the negative economic headlines, but also the mounting uneasiness in Germany over the ECB's low interest rate policy and focus on crisis countries, which is hitting German savers.

This follows Thursday’s weaker than expected IFO survey. The breakdown, which is only available until September shows a sharp drop in business expectations as...

  • Analysis and Opinion » Soft IFO Erodes Euro Confidence
    Posted Sep 24th, 2014 at 10:53 AM

    The EUR/USD is lower on Wednesday following the soft Ifo data, as yield continue to decline to record lows. The September Ifo confidence indicator slumped driven by a sharp decline in the...

  • Forex » Further Deterioration In German Business Confidence
    Posted Sep 24th, 2014 at 09:27 AM

    Sentiment in the Eurozone’s largest economy is continuing to deteriorate according to the latest IFO data from Germany this morning. The September numbers show a fall in the headline IFO Business...

  • Analysis and Opinion » Euro Tumbles to 11-month Lows on Weak Sentiment Data
    Posted Aug 25th, 2014 at 11:39 AM

    The EUR/USD currency pair hit a fresh low of 11-monht low 1.3184, and is poised to test support near the 2013 lows of 1.31. The European Central Bank President Mario Draghi acknowledged at the...