Forex & Economic Commentary by Lloyds TSB

The threat of recession in German and the euro zone economy moved a step closer yesterday after a much worse than expected IFO survey for September. The survey fell to a 3-year low, but will this persist since the fall in oil prices and the depreciation in the euro (trade weighted) since July? The survey questions optimism at the ECB that activity will trough in Q3 and start to recover in Q4. Euro zone M3 money supply figures for August are due this morning and may add to the debate whether money supply growth still poses a threat to inflation.



Go to Full Article