German businessmen start questioning the economic potential of the national economy. This statement is confirmed by Germany’s Ifo business confidence index, which has been declining for 5 month in a row. The index declined down to 101.4 in September, which is the lowest level since March 2010.
Analysts had waited for more optimistic figures around 102.5. Therefore, the index failed to come up to their expectations.
The demand for German products is in decline due to the eurozone debt crisis, which pushed most European economies in to recession. This is the main reason why German business circles are bearish on Germany’s economic prospects.
Last year, the German economy strengthened. However, signs of weakness emerged in late 2011 and have been present in the economy ever since.
Forex.
According to , the Euro keeps weakening against the US Dollar. The experts report that EURUSD is forming a downswing represented by wave А(С)/С of level H3.
The closest levels of support are located at 1,2883 and 1,2823. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1,3043 (as shown below).
