Euro Falls Sharply As Germany’s Sentiment and Forecast Deteriorate

Azeez Mustapha

Updated:

UNLOCK DAILY FOREX SIGNALS

Select a Plan

£40

 1-month subscription

Select

£30

 3-month subscription

Select

£21.5

 6-month subscription

Select

£399

 lifetime subscription

Select

£50

 Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Checkmark

Service for copy trading.

Checkmark

High profitable signals.

Checkmark

24/7 cryptocurrency trading.

Checkmark

10 minute setup with significant benefits.

Checkmark

79% Success rate.

Checkmark

Up to 40 trades per month.

Checkmark

Monthly subscriptions begin at £58.


After noticeably poorer than predicted German sentiment, the euro has fallen sharply today. Germany’s growth would be much weaker in the fourth quarter, according to the Bundesbank. The second-weakest country is Switzerland. Following a surge in key global treasury yields, the yen is likewise weak. The Australian dollar, on the other hand, is the strongest currency today, followed by the US dollar.

The Bundesbank stated in its monthly report that Germany’s inflation “continues to rise before it gradually declines in the coming year”. Industrial product prices continue to rise. The increase in energy prices is mainly due to rising oil prices. “On the other hand, the sharp increase in natural gas spot market prices may only have an impact on consumer prices after the end of the year.”

As the euro falls, the economy is expected to “grow significantly slower” in the fourth quarter. The strong momentum of the service industry also “may be significantly weakened.” The manufacturing industry is likely to continue to be plagued by delivery issues. Output may remain below the pre-crisis level in the last quarter of 2019. For 2021, GDP growth may be much lower than Bundesbank’s June forecast.

Euro Drops Sharply Today but Stays Above 1.1571

Germany’s Ifo business climate index dropped slightly to 97.7 from 98.8 in October, which was lower than the expected 97.8. The current assessment has dropped from 100.4 to 100.1, which is higher than the expected 99.3. The expectation index fell from 97.3 to 95.4, which was lower than the expected 96.1.

Today, the euro falls dramatically, although it remains above the 1.1571 minor support level. At this time, intraday bias is neutral. A break of 1.1668 will target the 55-day EMA on the upside (now at 1.1705).

By sector, the manufacturing index fell from 20.0 to 17.2. Service dropped from 191 to 16.5. Trade dropped significantly from 9.0 to 3.7. The construction industry rose from 11.1 to 12.9.

Ifo said: “Supply issues are causing headaches for companies. Manufacturing capacity utilization is declining. The sand on the wheels of the German economy is hindering recovery.”

Pablo Hernandez de Cos, a member of the Euro Central Bank Management Committee, warned that supply chain issues and rising raw material prices hurt the pace of economic recovery.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *