Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that while US economic confidence and labour market indicators are hitting long-term cyclical peaks, Eurozone economic reports are struggling to recover from their fall in the first four or five months of the year.
Key Quotes
“The German IFO survey for August and ZEW survey for September show business confidence is starting to improve, but overall, surveys for the region remain well down on their peaks at the end of last year.”
“Key activity indicators for July remain soft; German industrial production was significantly weaker than expected in July, reported last Friday, up 1.1%y/y, below 2.6% expected.”
“German exports, reported on Friday, fell 0.9%m/m in July, weaker than +0.3% expected, slowing to 4.5%y/y, relatively flat since a peak export value at the end of last year.”
“German imports were more encouraging suggesting demand in Germany remains robust, up 9.8%y/y. The data suggests that demand outside of Germany, in its export markets in Europe and overseas is weaker.”
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