German Ifo business climate dropped to 102.1 in April, below expectation of 102.8. Expectations dropped to 98.7, below consensus of 99.5. Current assessment also dropped to 105.7, below expectation of 106.5.
Ifo President Clemens Fuest commented that “high spirits among German businesses have evaporated,” and, “the German economy is slowing down.” Ifo economist Klaus Wohlrabe noted that the 5th drop in a row in the Ifo reading is merely a sign of normalization, and Germany is far from a recession. GDP growth is seen as slowed to 0.4% in Q1 versus Q4’s 0.6%.
EUR/USD dips to day low after the release and is on course for 1.2154 support.