The IFO Business Climate indicator for Germany was released yesterday, which measures entrepreneurs’ sentiment about current business situation and their expectations for the next 6 months. The reading showed a drop to 92.7 in October 2020, from a seven-month high of 93.2 in the previous month and slightly below market expectations of 93.
This is due to uncertainty over the current pandemic situation and rising cases across Europe. Italy, Spain and France have recently announced new restrictions as infection rates continue to increase. This continues to weigh on the euro, which is vulnerable to news of further lockdowns.
