020 7898 0500The main release from the eurozone yesterday was the German Ifo business climate survey for September. Although the figure dipped to 103.7 from 103.9 the previous month, it was better than the expected 103.2. Ultimately, the reading suggests that businesses in Germany are not too concerned about the increased trade tensions between China and the US. Not yet, anyway.
The euro made some gains against the dollar to start the week in decent fashion, although it did slip a little against sterling. It is felt that upbeat Brexit comments made by Dominic Raab have helped boost the pound, although unless developments are announced soon, we can expect the optimism to fade and support for the pound will wane. The dollar is clearly suffering from trade war fears.
The only release of note today is the wholesale prices from Germany for August. Month-on-month, the figure is expected to hit 0.2% from 0.0% in the previous month. On Wednesday, we will have the European Central Bank’s non-monetary policy meeting.
