The Ifo survey is expected to show an improvement in business sentiment towards the German economy
The big question about the German economy as we look towards next year is whether or not we have seen the worst of the latest economic slowdown.
There have been notable green shoots in the region about a possibility of an economic recovery but the latest PMI data was quick to put that all to rest - at least for now.
The Ifo survey today is expected to continue to show signs of improved business and economic sentiment, so that perhaps may allude to stronger confidence - especially in terms of investments as we look towards next year.
That said, I wouldn't be too confident about that for the time being. Recent surveys have shown some improvement in economic sentiment but they are still at rather depressed levels when you compare it to historical levels - including the Ifo survey today.
It's going to take some serious turnaround in economic data to trigger renewed confidence in the German economy and so far there hasn't been nascent signs of that, despite the recent improvement in the outlook.
The data later may point towards further improvement in economic sentiment but I doubt it will give a meaningful lift to the euro as there needs to be more convincing signs of a recovery - especially in manufacturing - for the currency to rally in the medium-term.
