German institutes have been upping their growth targets the last week or two and the German government says it will raise the official forecast in May. At present, they see 2007 growth of 1.75% but most private economists expect growth in the 2.0/2.5% area this year.
EUR/USD has taken on a more offered tone of late as US equities follow Asian and European shares higher. Risk aversion is easing a bit but pessimism regarding the US economic remains rampant. For a good counter argument to US pessimism, checkout the column by Kevin Hassett of AEI, a US think-tank, on the Bloomberg website. Bids are eyed on dips still to 1.3275/80 with offers stacked up in the 1.3310/20 region. EUR/USD trades at 1.3293.
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