The IFO released today their confidence report for May from Germany, all three indicators for current climate, current assessment and the expectations came much better than median estimates and above the previous estimates as well.

Germany makes nearly 1/3 of the Euro Zone economy and a better consensus from Germans could provide hope for the ECB to maintain their current Hawkish policy especially as growth came in better than anticipated during the course of the first quarter of this year.

The ECB maintained their interest rates steady at 4.00 percent as they stressed taming inflation remained their highest priority since the economic activity for the whole Euro area remained sound against the worst financial crisis in the United States since early 1930s that hit global financial markets and as food and energy prices continues to soar, which should affect consumers in the whole area