Germany’s IFO Survey of business confidence is expected to print at 82.3 in April, a reading within a hair the previous month’s record low at 82.1. The forward-looking Expectations component of the survey is seen rising for the fourth consecutive month, hinting at improvement in firms’ 6-month outlook. Still, the reading is expected at 82.6, a print below the 100 “boom-bust” threshold, suggesting conditions are still deteriorating albeit at a gentler pace. Indeed, a survey of economists conducted by Bloomberg forecast the Euro Zone’s largest market will continue to see deep contraction for the remainder of this year, with a return to positive growth delayed until the first quarter of 2010. Most notably, the economic recovery in the US is expected to outpace that of Europe, suggesting Federal Reserve will lead the ECB in raising interest rates, thereby putting downward pressure on the EURUSD exchange rate.
