020 7898 0500After last week’s mixed bag of data from the region, normal service resumed as the German IFO was released yesterday morning. German business sentiment (which looks at the coming six months) surged to a record high in June amid signs that the outlook for Europe’s largest economy is improving. While welcomed, it is not a huge surprise.
The German Bundesbank stated earlier in the month that it had raised its growth forecasts through 2019 on the back of a healthy labour market. Last night European Central Bank President Mario Draghi delivered the opening remarks at the European Central Bank Forum. He reiterated that the central bank wasn’t planning to change its policy path anytime soon, resulting in the euro weakening against the dollar overnight.
Later today, Draghi is once again expected to speak at the Forum. The markets will look to his comments for clues on rate policy.
