The number of German companies experiencing restrictive bank lending conditions increased slightly in July.
Ifo says it’s monthly credit survey of some 4,000 companies showed 45.1% described bank lending conditions as restrictive in July, up from 42.4% in June.
German banks face tight capital conditions and are looking carefully at potential borrowers, keen to avoid easing terms and repeating the mistakes made in the years of cheap credit that triggered a global financial crisis.
All a bit worrying. EUR/USD not surprisingly has given ground, presently at 1.4135. The market will no doubt be anticipating China buy interest on approach of 1.4100.
Cable lower again, presently testing depth of aforemnetioned buy interest in the 1.6350/60 area.
