Bundesbank Feeling Optimistic About German Economy, Somehow

Skerdian Meta•Monday, January 20, 2020•1 min read

The economy of the Eurozone has been losing pace and certain sectors have been contracting for many months, as we all know by now. The European Central Bank has turned dovish, cutting interest rates in September and reintroducing the QE programme in November, while begging European governments to increase fiscal spending and introduce programmes, mainly aimed at Germany.

But, Germans are forever hesitant on throwing more money at markets and Bundesbank now sees things leaning more on the positive side. They made some comments on their monthly statement as below:

There’s still no sign of an end to the construction boom
There are indications that manufacturing could stabilize at the start of this year
Sees German GDP growth at 0.6% last year, the slowest growth pace since 2013
Industrial orders haven’t further deteriorated for the past few months
Exports have expanded markedly
Business confidence has improved, short-term export expectations have recovered

They see a boom in construction and a stabilizing manufacturing sector. Industrial orders haven’t deteriorated further they say, while business confidence has improved and exports have expanded. Imports have been dragging manufacturing and industrial production down, but they are feeling confident on it, but let’s see if we will see some positive numbers from these sectors in the coming months. These comments should be positive for the Euro, but EUR/USD continues to slide lower.

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 See More

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.