Business optimism in Germany improved unexpectedly for the second month in a row in February, according to a survey published this morning. The ZEW Institute said its economic expectations indicator for Germany rose to 15.0 in February from 14.0 in January. In January, the index posted its first increase in seven months, climbing from just 0.6 in December, but analysts said the optimism had to be put in the context of low growth expectations from Germany.
The institute, whose index is seen as a forerunner of the important Ifo survey, said it expects German growth to remain weak in the second half of the year. The ZEW's expectations indicator for the eurozone declined in February after rising in January, slipping 1.2 points to 28.7, while the current economic situation indicators in both the eurozone and German remained weak, down 1.5 points at minus 75.9 and unchanged at minus 94.7, respectively. At 1000, the euro was marginally higher against the dollar, at USD1.0723 from USD1.0711 earlier, while it was unchanged against sterling, at 67.06p. //www.fxcentre.com