Even Ifo Turns Dovish on Germany - Forex News by FX Leaders
Gloomier times ahead for Germany

Even Ifo Turns Dovish on Germany

Posted Thursday, July 25, 2019 by
Skerdian Meta • 1 min read

The German economy is facing some turbulent times and judging by the recent data, things are expected to get worse. Yesterday we saw the manufacturing PMI indicator show that this sector is falling deeper and deeper into recession, pulling the Eurozone manufacturing down with it. Today, the Ifo business climate deteriorated further too. Now, Ifo has turned dovish on Germany as well.

Ifo economist Klaus Wohlrabe made some comments following the data earlier, which paint a no-so bright picture ahead. Here are his comments:

  • German economy faces a turbulent time ahead
  • Wohlrabe sees a slightly positive growth rate in 2H 2019 for Germany
  • But notes that recession is spreading in all important sectors in German economy
  • Risks of a disorderly Brexit has increased
  • Doesn’t believe that the ECB will loosen policy today

So, apart from manufacturing, the economic weakness is spreading across all sectors. It was going to affect the other sectors sooner or later because manufacturing and industrial production are the backbone of German economy. Although he doesn’t expect the ECB to cut rates today, who knows, we might get a surprise rate cut.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments