According to the result of the research conducted by the IFO, the index of business confidence in Germany increased from 103.2 points up to 104.7 points in November 2014. With that said, the indicator seems to have found the bottom and is currently going up from the lowest level since December 2012.
It should be noted that prior to reversing, the index showed the negative tendency for 6 months in a row. The latest survey conducted by Bloomberg resulted in a negative consensus forecast indicating a drop down to 103 points, Market Leader reports.
Meanwhile, the experts of Masterforex-V Academy assume that the German economy is currently being undermined by all those sanctions imposed on Russia. The thing is that Germany is an export-oriented economy. Despite all those political confrontations, a lot of Germany's export goes to Russia (at least it used to be so until the sanctions were introduced). At the same time, the Chinese economic slowdown and the instability in the Middle East only add the fuel to the fire, exerting even more pressure on Germany and other European economies dependent on the import of crude oil and other energy carriers.
Meanwhile, the economic projections do not seem to boast a positive tendency as well. In particular, the latest GDP growth forecast made by the European Commission regarding the Eurozone's biggest and strongest economy is equal to 1,3% for 2014 and 1,1% for 2015. As you can see, the tendency indicates a slowdown.
Still, some experts contradict these forecast. In particular, the experts working for Bundesbank expect the national economy to grow by 1,9% and 2% in 2014 and 2015 respectively.
Today, on November 27th, the common European currency is still forming a downward tendency, thereby losing value against its major counterpart - the US Dollar, MAsterforex-V Academy reports. At the same time, the experts are convinced that while the currency pair is still trading around 1,2469, the next target to monitor is 1,2255, which acts as a major level of support.
