The euro strengthened against the dollar yesterday due to a positive data release in the morning, which showed that business sentiment in Germany is improving.
The Ifo Business Climate indicator rose more than expected in August, as both manufacturing and services showed an improvement. This was the highest level since February and slightly above market expectations, as firms assessed their current situation and we more optimistic about the coming months. This boosted hopes that Europe’s largest economy is set for a strong recovery.
ECB official, Isabel Schnabel, is due to make a speech later today and is likely to comment on the outlook for the EU economy.
