German business climate with best results for 16 months, the Euro can only partially benefit
Ifo index exceeds expectations
The result from the survey of 7,000 German companies for the Ifo business climate index, today showed the best result in the last 16 months. The result shows that the development of the German economy is stable and on the way out of crisis. While analysts, for a value of 106.2 points in July, expected a rise to 107.0 points, the forecasts was exceeded with 107.4 points. Leading analysts expect a continued upturn in the German economy and a growth this year of 0.6%. This could rise to 2.0% in the next year, if the overcoming of the recession in the euro area should provide as robust.
Euro may benefit only partially
The euro could only partially benefit from the good results of the largest economy in the euro area. Especially against the yen the EUR suffered strong losses of today. The pair EUR/JPY falls to -0.92% currently at a price of 130.47. Also the price of CHF and the USD rose against the EUR. The pair EUR/CHF is currently showing a decline of 0.36%, with a rate of 1.2295, and the pair EUR/USD fell by 0.18% at 1.3345.
The strongest growth shows pair EUR/AUD, which currently record an increase of 0.65% at a price of 1.4907. Against the GBP, the EUR could currently rose 0.22% at a price of 0.8502.
JPY benefited from concerns about emerging countries
The japanese yen was able to benefit from the growing concern for the economic development in emerging countries, such as India and Indonesia, whose currencies declined sharply and strengthened the demand for more robust investment today. The JPY shows strong gains against all its counterparts.
Against the USD, the JPY rose 0.75% to 97.76 currently and the GBP current 0.98% to 151.74. The strongest growth, the yen currently recorded against the Australian dollar. The pair AUD/JPY currently yeigt a loss of 1.47% at a price of 87.60.
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