Euro Bulls Rule in Germany Amid Merkel-Draghi Aplomb

 

German companies are more bullish on the euro’s prospects over the next three months than at any time since February, showing confidence in the ability of the European Central Bank’s interest-rate cuts to spur the economy.

A survey by Commerzbank AG (CBK), the nation’s biggest lender after Deutsche Bank AG, found that 26 percent of companies in Europe’s largest economy expect the euro to advance against the dollar, compared with 18 percent forecasting a decline. As recently as March, the bears outweighed the bulls.

This month’s rate reduction by ECB President Mario Draghi to a record 0.5 percent may already be paying dividends in Germany, where Chancellor Angela Merkel faces federal elections in four months. The burgeoning optimism ratifies a report last week from the Ifo institute that found German business confidence rose in May for the first time in three months and another from the Bundesbank predicting growth is gathering pace.

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It seems that only Germans are bullish about euro

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