The euro weakened to 1-month lows against the dollar yesterday due to concerns about the rising military tensions in Ukraine. US troops have now been put on alert to be deployed in the event of an escalation.
Data revealed yesterday that the IFO Business Climate indicator for Germany rose in January, recovering from a 10-month low in December. This signals that supply shortages in manufacturing and delivery delays in retail are easing. Sentiment improved across all sectors – manufacturing, services, trade and construction.
