German IFO’s Economist: Economy to stagnate in Q1 2021 amid little confidence

Following the release of the final German IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that the economy is starting the new year with little confidence.

Additional quotes

“We expect GDP stagnation in Q1.”

“Industry continues to be well-positioned, wants to make more, export expectations have risen.“

“Retail has collapsed.”

“Many service providers are also affected by lockdown, including transport and logistics.”

“Economic uncertainty has grown.”

“Delays to vaccines have caused some economic uncertainty.”

“End to VAT cut appears to have reduced demand for pricier goods like furniture.”

EUR/USD attacks 1.2150

EUR/USD finally broke its Asian range trade to the downside after the German business morale fell sharply in January.

The spot currently trades at daily lows of 1.2155, down 0.12% on the day.