Carsten Brzeski, Chief Economist at ING, notes that after the stabilisation in May, Germany’s most prominent sentiment indicator took another hit in June on the back of increased trade tensions and domestic political turbulence. Key Quotes “The Ifo index dropped to 101.8, from 102.3 in May. While the expectations component remained unchanged, the current assessment component dropped to 105.1, from 106.1 in May.” “The jury on the real state of the German economy is still out. The combination of strong fundamentals, a stuttering start in the first months of the year and a series of soft indicators has clearly increased uncertainty.” “Temporary soft patch, transition to a slower growth path or even the start of the end of the long and impressive growth performance, which started in 2009, are three possible scenarios for the German economy in the coming months.” “In our view, the most likely scenario is still a rebound towards a slower growth path on the back of the strong labour market, low interest rates, low inflation and a weak euro. At the same time, however, the number of dark clouds in the German economic sky has clearly increased.” “Currently, the most threatening factors are gradually escalating trade tensions, higher oil prices and, very recently, turbulences in domestic politics.” “Domestic politics, however, currently are a bigger risk. The next two weeks could dramatically change the political landscape in Germany and in a worst case scenario even lead to a fall of the government and new elections.” “Six drops and one stagnation in the last seven months or in other (soccer) words: six losses and one draw. This is clearly not a promising trend.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin price analysis: BTC/USD recovery stuck on approach to $6,200; Charlie Lee says the hardship makes us stronger FX Street 5 years Carsten Brzeski, Chief Economist at ING, notes that after the stabilisation in May, Germany's most prominent sentiment indicator took another hit in June on the back of increased trade tensions and domestic political turbulence. Key Quotes "The Ifo index dropped to 101.8, from 102.3 in May. While the expectations component remained unchanged, the current assessment component dropped to 105.1, from 106.1 in May." "The jury on the real state of the German economy is still out. The combination of strong fundamentals, a stuttering start in the first months of the year and a series of soft indicators has clearly increased… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.