The German Ifo Business Climate reading provided some positive news for the E.U. on Wednesday with a mark of 106.7, which beat the estimate of 105.8. The EUR did trade in a stable range and managed to pick up some of its lost ground. Today Germany will once again be in focus with the GfK Consumer Climate index which is forecasted to have a reading of 4.1. Tomorrow will be relatively light with data with only CPI numbers being brought forth. While Germany proves to be the ‘engine that could’ other nations in the E.U. continue to be a worry. Questions have been hovering over Ireland, Greece, and Hungary much of this week due to various concerns. Essentially it is being pointed out that the prospects for overall growth from the E.U. remain troubling and that Germany and a few others will not be able to be the ‘sugar daddy’s’ of the continent forever. However, Europe is not alone with its problems and questions about its debt ratios. The EUR has traded weaker, but could find some backing short term if its decline has been judged to have been too quick.
Written by bforex.com