German Business Sentiment Eases

German business sentiment slips marginally in August following six straight monthly rises, as the Ifo comes in at 115.9 points versus July’s record high of 116.0 points.

The drop is being attributed to the strengthening of the euro (€1.1804) over the last few months, fresh geopolitical concerns with the US-North Korean conflict and fading signs of any imminent investment boom in the U.S.

The best explanation for the drop is simply a small technical correction after three record-highs in a row.

German companies were less upbeat about their current situation, but their short-term business outlook improved further, according to the Ifo’s monthly survey of about 7,000 companies.

Germany’s statistics body said earlier Friday that the economy grew at an annualized rate of 2.5% in the second quarter, propelled by corporate investment and private consumption.

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell