Two reports delivered in daily succession have shown the business climate of Germany to be in deep decline this month. Yesterday’s report from ZEW showed a deep plunge in economic sentiment and today’s Ifo Business Climate report gave credibility to ZEW’s findings.
Today’s Ifo report underscored the rising tension across the euro zone which appears to be sending traders elsewhere for the safety of their investments. As outlook declines, demand goes with it, as does the strength of the local currency. The euro (EUR) may get hit this week from the loss of standing among German businesses and investors.
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