020 7898 0500The German Ifo business climate index included the service sector for the first time and fell by 1.2 points to 102.1 in April. It had been expected to hit 102.7 and points to a fall in confidence. Recent economic data releases from the eurozone have been faintly underwhelming which won’t have helped matters, but fears of a trade war play a part too.
The euro strengthened against the dollar and more-or-less traded sideways against sterling throughout the day. There are no releases of note due today, but attention will undoubtedly be focused on what the European Central Bank say in their press conference on Thursday. Interest rates will remain at their current levels, but there could be some indication of future policy.
It will be fascinating to see what President Mario Draghi has to say about the eurozone’s economic performance in 2018 to date and whether that will influence policy in the near future. Many investors are expecting a dovish tone, especially given what a strong euro has done to export growth and it would be no surprise if Draghi’s comments weakened the euro.
