As recent economic updates from EU show that the union is consistently improving and on a path of recovery. Yet we can see that the post-Brexit recession risks still weigh on the minds of German Businesses. The IFO business sentiments report released on Thursday showed that the economic conditions may have gotten worse for businesses in the EU according to polled German Businessmen. The IFO business climate index fell from 108.3 points in July to 106.2 in August, while analysts expected the gauge’s headline figure at 108.5. The current assessment of the state of EU economy fell to 112.8 points from the previous reading of 114.8. Analysts projected that is could even improve to 114.9 points. Projections for further growth have also worsened according to the IFO Expectations report. The gauge printed lower in August at 100.1 points while analysts expected it would rise to 102.5.
Nevertheless, the European currency rose against the Dollar by 0.20% to 1,1286 as the growth on the US currency remains depressed due to the uncertainty related to Yellen’s speech that is due to tomorrow.
The US Dollar attempts to pare down declines after lacklustre home sales report, being weaker than expected. Existing home sales dropped as well, along with existing home price index. The futures on Dollar trade near Wednesday close at 94.66 (-0.07%).
Crude oil prices renewed downturn after gloomy EIA report showing that stockpiles in the US including crude oil and gasoline stockpiles rose, crushing analysts estimates projecting a drawdown. Together with the rising US output, gloomy data from the energy department pushed prices lower on Thursday, WTI -0.45% at 46.56, Brent -0.41% at 48.85 per barrel.
The Gold ticks lower, extending decline to a fourth day in this week, waits for Yellen signal, XAUUSD -0.30% at 1.325,35.
Stay tuned for more and trade with Tickmill!