German IFO confidence survey set to move slightly higher in April

The Munich-based IFO institute’s monthly index, which polls executives in Europe’s largest economy, will likely show business mood across Europe’s largest economy grew merely in April, according to median analysts’ forecasts. 

- IFO Business Climate Index probably decelerated to 110.4 vs. 110.7

- IFO Current Assessment Index likely rose to 115.6 vs. 115.6

- IFO Expectations Index probably edged lower to 105.8 from 106.4

Sentiment indicators and survey data have shown confidence in the euro-area slipped amid concerns about the ongoing conflict in Ukraine. Ukraine still creates uncertainty about coming months despite strong confidence in the current state of the German economy.

Investor confidence in Europe`s largest economy fell for the fourth month in a row in April, according to the Center for European Economic Research, or ZEW institute. The six-month expectation index hit 43.2 in April, falling from 46.6 the previous month.

Meanwhile, data showed Wednesday that Germany`s private sector expanded faster in April, recovering from a slight slowdown in growth in March with both manufacturing and services sectors advances more than expected in April, recovering from a slight slowdown in growth in March.

Manufacturing PMI rose to 54.2 from 53.7 in March, while services PMI increased to 55.0 from 53.0, better than the 53.4 forecast by analysts.

Upbeat data today would definitely stimulate euro gains. The euro would definitely pick up further against major currencies if Thursday`s data beat analysts` median estimates.

The already pressured euro over political uncertainty in Ukraine is currently trading at $1.38154 after the EURUSD pair opened today`s session at $1.38159. The pair rose earlier in the day to set a high at $1.38252 and a low of $1.38117.