An interesting trend can be seen recently at the European financial market. Despite the fact that in November the business activity index in Germany was getting to peak values, in December they were followed by an unexpected decrease. Experts explain it with a difficult political situation where Angela Merkel attempts to form a coalition with several political parties in the German parliament.
But even when the business activity index is slightly decreasing, the expectations of market participants are positive. So with a great deal of probability, we can suggest that in the next year the business activity index in Germany will grow too and will gain about 1-2%. This will definitely influence the Euro exchange rates too, because Germany is one of the leading economies in the EU.