Latest data released by Ifo - 18 December 2020
- Prior 90.7; revised to 90.9
- Expectations 92.8 vs 92.5 expected
- Prior 91.5; revised to 91.8
- Current assessment 91.3 vs 89.0 expected
- Prior 90.0
Slight delay in the release by the source. German business morale improves more than expected despite tighter restrictions being introduced to curb the virus spread.
Vaccine optimism is one thing but it is also likely that the survey here captures the period before the latest set of restrictions came into place. Ifo says 20% of the survey responses were done after the second lockdown is announced, though before it kicked into effect.
Either way, the more optimistic tone is not going to present much worries for risk trades for the time being when paired together with the PMI readings from earlier this week.
