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Following the release of the final  German IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that the economy is expected to show a mild contraction in the first quarter.

Additional quotes

German GDP should shrink 0.7% QoQ in Q1.

German industry is very strong, order books have filled up.

In manufacturing there are signs of upswing.

Export expectations have exploded, due to strong demand from the US and China.

In services, climate has improved significantly.

Market reaction

EUR/USD was last seen trading at 1.1785, up 0.21% on the day, having shrugged off the encouraging German IFO data.