The mood of German companies deteriorated for the second consecutive month. The common currency is therefore under pressure. On the other hand, the dollar is recovering slightly, which is slowing down the recent sharp rise in oil prices.
The murky mood of the German economy weighed only slightly on the euro on Wednesday. By early evening, the common currency was listed at $ 1.1744 after $ 1.1753 the night before. However, it was still just under a US cent above its nine-month low reached a few days ago. Delivery bottlenecks and the increase in the number of corona have darkened the mood on the boards of German companies. The Ifo business climate index fell in August from 1.3 to 99.4 points, more sharply than expected and at the same time for the second consecutive month, as announced by the Munich institute during the ” a survey of around 9,000 managers. “Concerns are growing, especially in the hospitality industry and tourism,” said Ifo President Clemens Fuest. Due to the shortage of materials and rising costs, many companies want to increase the prices on their side. This applies for example to industry, retail and construction. Executives assess their situation a little better than before, but assess their business prospects with much more skepticism.
Prices on the oil market have increased only by triples. While the price of European Brent crude rose 0.7% to $ 71.50 per barrel, the price of US WTI oil rose 0.1% to $ 67.60. The recent rise in oil prices has been slowed by the slightly stronger dollar, which has made crude oil traded in US currency a little more expensive for many investors and therefore weighed on demand. The results of the oil market since the start of the week are still clearly positive. However, a constant stressor has long been the spread of the more contagious delta variant of the coronavirus. It is true that it is hoped that there will be no major restrictions on public life in countries with high vaccination rates. However, such restrictions, which also weigh on the economy and the demand for oil, cannot be completely ruled out.