According to the recent report released by Ifo, the level of business confidence in Germany decreased in April 2016. The researchers say that the decrease was conditioned by worse economic prospects.
To be more specific, the index dropped from 106.7 points down to 106.6 points over the reporting period. At the same time, experts had expected 107.0 points. The decrease was triggered by worse expectations in trade (both wholesale and retail sales). At the same time, industrial production and construction are showing an improved business climate.
By the way, the research was based on the opinions expressed by some 700 respondents, Market Leader reports. The report also indicates that the index of current business conditions worsened from 113.8 all the way down to 113.2 in April 2016. Experts failed again since they had expected no change whatsoever.
It is interesting to note that while sharing positive expectations regarding the national economy, German experts express concerns related to the economies of the USA and China, which happen to be the world’s 2 biggest economies. Even though the index can feel increasing pressure, the overall bias is still moderately positive. The German economic growth is currently backed by consumption.
FOREX
In the meantime, Masterforex-V Academy reports that the common European currency is still rallying against the U.S. Dollar even though the price has retraced a bit from the local high. To be more specific, the currency pair is currently forming wave A/B of level Weekly2, the experts say. The price is forming sub-wave b(C ) inside the rally.
On breaking above the 1.1464 high, the currency pair is going to continue the existing move. If that’s the case, the closest major levels of resistance will be located at 1.1494, 1.1713. Alternatively, a break below the bottom of the ascending MF sloping channel is going to indicate the end of the current rally.
