020 7898 0500The threat of a trade war continues to hit Europe, as figures released yesterday showed that German business confidence has deteriorated. The Ifo business climate index fell to 101.8 in June from an upwardly revised 102.3 the month before. While it came in above expectations, the reading still points to the lowest figure since May 2017.
The euro enjoyed a good day against sterling and the dollar yesterday and, while the gains weren’t all that significant, it may well be the start of a decent run for the single currency. It is fair to say it hasn’t been performing all that well of late, so now might be the time for it to buck recents trends.
There are no major economic data releases from the eurozone due today or tomorrow, but on Thursday we will see Gfk consumer confidence for Germany, as well as business confidence, consumer confidence, and economic, services and industrial sentiment for June. The releases should give us a real idea of how the eurozone has been performing of late and it will be interesting to see whether trade war fears continue to affect the economy.
