Germany IFO is likely to rise further

The March report for Germany's IFO index, to be released on 25 March, is likely to show further strength. 

Standard Chartered notes its forecasts as follows:

• We expect 107.8 from 106.8 in February (consensus is 107.3), the fifth successive monthly rise. The current conditions index stalled last month, butwe expect its uptrend to resume this month (to 112.0 from 111.3) and theexpectations index is also likely to rise again, in our view (we expect to 104.0 from 102.5). 
  
  
• German businesses are benefiting from the competitive euro, cheaper energycosts and recovering demand both domestically and globally. 
  
  
• Meanwhile, consumer confidence is being bolstered by a strong labour market and rising real wages: March's GfK consumer confidence (out on 26 March) is likely to rise to a new high.