Home German IFO Business Climate disappoints – EUR/USD ignores
Forex News Today: Daily Trading News

German IFO Business Climate disappoints – EUR/USD ignores

So maybe Brexit is problematic after all? Germany’s No. 1 Think Tank surprised with a drop in business confidence.  The headline business climate figure fell from 108.3 to 106.2, below expectations for a modest slide. The Current Conditions  component also slipped from 114.8 to 112.8. The Expectations figure missed expectations with a drop from 102.1 to 100.1.

It is also interesting to see that ZEW and IFO are going in a separate direction. The ZEW indicator for July showed a shock: a drop to the negative ground due to Brexit. It later recovered. On the other hand, IFO stood its ground in July but is falling now. IFO usually has the upper hand. Will it eventually hit the euro? Not so fast.

EUR/USD did not take too much note of the publication and is ticking a bit higher. The pair trades at 1.1286. EUR/USD already had its slide from the highs earlier in the week but bounced off the 1.1240 level.

Tension is growing towards the Jackson Hole Symposium. Fed Chair Yellen delivers her speech tomorrow at 14:00 and markets are waiting to hear if she has anything other than dovish to say.

EURUSD August 25 2016 IFO Germany

Update: Indeed, Brexit is cited   as a reason for the slump,  while Turkey’s coup attempt is dismissed.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.