According to the recent report released by the IFO (Germany), the German IFO index of business confidence declined from the previous value of 108.6 points (seen in April) down to latest reading of 108.5 points, Market Leader reports.
It should be noted that May’s decline is the first time in 7 month the index has actually shown a decline. At the same time, it is reported that the Bundesbank predicts that the German economy is growing to resume the growth in a matter of months. Apparently, the central bank’s predictions are currently contradicting the actual state of affairs in the national economy.
Still, the uncertainties around Greece are seen as the major risk for theGerman economy, which is the Eurozone’s leading economy.
Another IFO index based on the expectations expressed by German top managers seems to have dropped as well. This time, April’s index value of 103.5 points declined down to 103 points in May.
this is another proof that the German economy has actually slowed down a bit. Whether it is going to resume the growth as promised by the central bank of Germany, it remains to be seen in the coming months.
Meanwhile, the European Commission predicts that the German GDP is going to grow by 1,9% in 2015. At the same time, next year’s forecast is 2%. So far, the latest figures show that the economy slowed down to 0,3% in Q1 2015.
As of today, EURUSD is trading around 1,1009, Masterforex-V Academy reports. The closest major levels of support are located at the MF sloping channel and MF pivot 1,0670. At the same time, a break above 1.1466 will give a clue about what is probably going to happen to the EURUSD exchange rate, i.e. whether the price is login to continue the process of consolidating within a flat market of a bigger-scale.
