German business climate improves
German business confidence rose in August for the fifth month in a row, exceeding market expectations by climbing to 90.5. Business expectations increased to 95.0 on the back of optimism that the country is climbing out of recession. The German import price index also sunk -0.9% in the month to July, declining at an annual rate of -12.6%.
The business climate index is based on a survey of over 7000 business executives who were shown to believe export levels and business prospects are looking up, leading to the highest reading since September 2008. The jump in confidence led the euro to rise higher against the US dollar, and extend gains over the pound.
The euro exchange rate is currently at GBP0.8783 and USD1.4307.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.