Better than expected business sentiment in Germany: Business climae rises to 107.7, expectations jump to 106.6 and the current assessment move up to 114.2 points. This contrasts yesterday’s disappointing ZEW number.
EUR/USD grinds higher to 1.1150, nothing really spectacular.
Germany’s No. 1 Think Tank, IFO, was expected to report a small upswing in sentiment. The Business Climate was predicted to rise from 106.6 to 106.8 in May. The Business Expectations figure carried expectations from 100.4 to 100.8 points and the Current Assessment was expected to remain unchanged at 113.2.
EUR/USD traded around 1.1145 towards the release, consolidating on lower ground.
Also in the euro-zone, the ministers of the Eurogroup decided on releasing a tranche of aid to Greece but they did not agree on debt relief. The issue of some kind of debt forgiveness was pushed back to after the program ends, to 2018, basically after the German elections in October 2017. The IMF surrendered and the can was kicked down the road.
While a crisis was averted for now, everybody was left with a sour taste in their mouths and the problem is far from resolved. Discontent is rife across the continent.
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