Despite the weak fundamental indicators of Germany, which were published today in the morning, the European currency continued its gradual strengthening against the US dollar. Many experts expect that the European Central Bank will signal at its tomorrow's meeting about broad and significant changes in the quantitative easing program.
It is also predicted that the ECB could raise the forecast for GDP growth in the eurozone for 2019, and lower the basic inflation by 0.5 percentage points, to 1.5% due to the strengthening of the euro.
Good indicators for the economy of the eurozone for the 3rd quarter leave for the ECB quite a wide range of actions. GDP demonstrates good growth dynamics, inflation will also continue to gradually strengthen, as planned.
The only problem for the head of the European Central Bank, Mario Draghi, remains the euro's high rate, which could strengthen even more if the regulator announces the curtailment of measures to redeem bonds and stimulate economic growth, which ultimately leads to higher interest rates.
All this keeps traders from further purchases of the European currency since any statements by Mario Draghi about the high rate of the euro could jeopardize the upward trend of the European currency by the end of this year, which will lead to a sharp decline in the short term.
Today, data came out, which shows that orders in the manufacturing sector in Germany in July this year declined. Despite this, orders remained at a very high level, which will support the economy in the future.
According to the Ministry of Economy, orders in the manufacturing sector of Germany in July fell by 0.7% compared with June, while economists predicted the growth of the indicator by 0.4%. Domestic orders in the manufacturing sector of Germany decreased by 1.6%.
Compared to the same period in 2016, orders in the manufacturing sector in Germany increased by 5.0%.
Today, the head of the largest credit bank in Germany made a statement to the ECB. According to Deutsche Bank CEO John Cryan, despite the fact that cheap money helped countries and banks to avoid a crisis, they also led to more significant shifts. It is primarily about the soap bubbles, which are gradually inflated in the capital market and the real estate market in Germany. According to Cryan, stock markets have now only one direction - up, which could negatively impact the euro zone's economy in the future, leading it to another crisis.
It is worth noting that Germany has long been pressing the European Central Bank so that he went on to wind down the incentive program and began to gradually increase interest rates.