German IFO index beats expectations, ends the year at highest level since Feb 2014

The Munich-based Ifo economic institute released Germany's business confidence for December which showed solid improvement. German IFO index increased to 111.0 in December from 110.4 in November.

The index beat expectations for a reading of 110.7 to end the year at highest level since February 2014. The increase was mainly driven by a upbeat current assessment component which surged to 116.6 from 115.6 in the previous month.

The Business Expectations Index, which measures attitudes toward business prospects over the next six months, inched up to 105.6 this month from 105.5, in line with expectations.

Data suggested that German companies were un affected by Trump’s victory in the U.S. presidential election, industry data showed on Monday. The German economy has continued its recovery and defied many external risks and turmoil, like Chinese stock market turbulences and economic slowdown, low oil prices, Brexit and continued weakness in many Eurozone countries. Today's data reaffirms the upbeat economic outlook.

"The German economy is making a strong finish to the year," Ifo chief Clemens Fuest said in a statement. He added that both the manufacturing and wholesaling indices rose and manufacturers were planning to ramp up production in the months ahead.

EUR/USD largely muted at 1.0465 after German IFO data.