“¢ German Ifo Business climate comes in better than market expectations.
“¢ The uptick lacks any strong conviction amid a modest USD uptick.
The EUR/USD pair reversed a dip to sub-1.1600 level in the last hour and quickly recovered around 15-20 pips post-German Ifo business survey.
The US Dollar selling, triggered by Friday’s perceived dovish comments by the Fed Chair Jerome Powell, at a closely watched Jackson Hole symposium, abated at the start of a new trading week and was seen as one of the key factors exerting some downward pressure on the major.
The pair started retreating from 2-1/2 week tops, albeit found some support after the headline business climate index climbed to 103.8 in August and bettered consensus estimates pointing to an uptick to 101.9.
Adding to this, the current economic assessment and expectations Index – indicating firms’ projections for the next six months bettered expectations, also bettered expectations and provided a minor lift to the shared currency.
The uptick, however, lacked any strong conviction, with the pair still struggling to attract any follow-through buying interest and holding well below Asian session high level of 1.1654.
Technical levels to watch
Any subsequent up-move beyond 1.1615-20 area might continue to confront some fresh supply near the 1.1650-55 region, above which the pair is likely to aim towards reclaiming the 1.1700 round figure mark.
On the flip side, a sustained weakness below the 1.1600 handle might turn the pair vulnerable to head back towards testing 1.1535-30 support area before eventually falling to the key 1.1500 psychological mark.
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