FX.co ★ Germany and France under threat of recession

Despite performance of eurozone industry sector has exceeded the forecasts this month, it started to decline due to slower growth
Germany and France are now at risk of recession.
Pessimistic mood was further exacerbated by the ZEW data that demonstrated the fall of the economic expectations index to its low since December 2008.


Such economic conditions are highly unlikely to make the Germany’s government to keep on assisting the periphery countries.
Nevertheless, there are no any signs that such unfolding of the debt crisis is taken to consideration on the currency market.
Meanwhile, the euro is likely to be supported until Friday at least. On Friday FRS chairman Ben Bernanke will express his opinion on the US policy and its further priorities.