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EUR: no insight from Draghi boosts the euro

By Ricky Bean August 29th, 2017

There were mixed signals from Germany last week following the release of ZEW and IFO surveys. Early in the week, the German ZEW (a survey of 300 German institutional investors and analysts) showed that the six-month economic sentiment declined significantly. However, on Friday the German IFO (a survey of about 7,000 businesses) beat expectations. While the index did show a slight decline, it was minimal, suggesting that sentiment in German business remains strong.

Meanwhile, late on Friday, ECB President Draghi spoke at the Jackson Hole Economic Symposium. There was plenty of anticipation surrounding what he was going to say and the tone he would take. However, Draghi kept to script and made no mention of future policy.

Today we have the German retail sales hitting the wires along with the money supply numbers. Wednesday and Thursday will be the main focus for the week as the inflation numbers are scheduled to be released. As the euro has strengthened significantly over the last few months, it will be interesting to see what impact this has had on the region. Finally, on Friday we have the regional manufacturing numbers due to hit from Spain, Italy, France and Germany.