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(Kitco News) – Arguably the most important reading right now is the number of expectations, as the nation is still emerging from lockdown. The reading came in at 102.9 versus expectations of 101.4 for May. The Ifo business climate index reached 99.2 (vs exp 98.2) and the current valuation is printed at 95.7 (vs 95.5 expected).
In terms of comments the Ifo institute said that “the recovery is accelerating” and that the German economy is expected to grow 2.6% in Q2 compared to Q1. They also added a fairly healthy projection for the third quarter of 2.8%. A source of concern in the report was the rise in commodity prices as the institute noted that “the construction sector still well positioned, the rapid rise in commodity prices is becoming a serious problem”.
ECB Stournaras said the ECB must keep the money taps fully open because the crisis is not over. He also added: “There is no reason to change the pace of the PEPP procurement program”.
EUR / USD broke its range today breaking through the resistance area of 1.2245, but there was some decline in the greenback in the Asian session leading up to the EU opening.
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