Germany’s IFO: Exporters grow more optimistic as economy picks up

The latest data published by Germany’s influential IFO institute showed on Tuesday, the exports expectations for Europe’s economic powerhouse improved sharply in July, as the coronavirus pandemic-imposed borders closure re-open.

Key details

“Export expectations in Europe’s largest economy rose to 6.9 points in July from -2.2 the previous month.”

“Cautious optimism is spreading among German exporters.” 

“The automobile sector is one of the biggest winners. After some very tough months, the export business should pick up again.”

Market reaction

EUR/USD bounced-off daily lows of 1.1715 to now trade at 1.1730, still down 0.15% on a daily basis. The uptick in the spot is mainly due to the pause in the broad US dollar rebound while the upbeat German data also underpins the shared currency.