German exporters’ morale falls to lowest since GFC – IFO survey

A survey conducted by Germany's influential IFO institute showed on Thursday, the German exporters’ morale fell to its lowest level since the global financial crisis (GFC) likely due to the coronavirus pandemic.

Export expectations in March fell to -19.8 from -1.1 in February, hitting the lowest level since May 2009 and marking the steepest fall since German reunification three decades ago, the survey showed.

IFO Chief Fuest said: “The Coronavirus pandemic is putting the brakes on world trade. Transnational logistics will become more difficult. As an export-nation, Germany is particularly affected.”

• German IFO’s Economist: GDP could drop by 5-20% this year
• German Final IFO Business Climate Index misses estimates with 86.1 in March, EUR/USD off highs

EUR/USD implications

The recent price action in EUR/USD remains driven by the US dollar dynamics, as the greenback remains under pressure amid reduced funding stress following the $2 trillion fiscal stimulus measures.

The spot now trades at 1.0920, having hit a daily high of 1.0934, up 0.42% so far.