In February, Germany’s IFO current assessment rose to 86.7, beating forecasts of 86.1

    by VT Markets
    /
    Feb 23, 2026
    Germany’s Ifo Current Assessment index rose to 86.7 in February. This was higher than the forecast of 86.1. The February Ifo Current Assessment beat expectations. This suggests Germany’s economy is holding up better than many feared. It is a welcome sign after the weakness seen through much of 2025. In the near term, this is a supportive signal for German equities and the euro.

    Implications For German Markets

    This result may help the German DAX index move higher from its current level near 18,500. Germany’s economy shrank by 0.3% in the final quarter of 2025, so any sign that conditions are stabilizing matters. Traders may consider short-dated DAX call options to target potential upside over the next few weeks. The data also gives the European Central Bank less urgency to cut interest rates, especially with Eurozone inflation still sticky near 2.6%. A stronger Germany also tends to support the euro. EUR/USD, now around 1.09, could test resistance near 1.10. That said, one month of data is not enough to confirm a trend. Sentiment surveys can swing from month to month, and a single upbeat reading does not guarantee a recovery. Before taking larger positions, we will watch next month’s German factory orders to see whether improved sentiment turns into real activity.

    Key Risks And Next Data Points

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