EUR/USD rebounds above 1.14, turns positive for the week

• Broad USD weakness helps the pair recover weekly losses on Friday.
• Ifo data shows that sentiment continues to deteriorate in Germany.
• ECB recognizes the weakness of the recent data.  

The EUR/USD pair, which fell to its lowest level in more than two months below 1.13 on Thursday after ECB President Draghi acknowledged the weaker growth momentum and increasing downside risks, staged a decisive recovery on Monday and gained nearly 100 pips on Friday. As of writing, the pair was trading at 1.1410, adding 0.9% on a daily basis. With today’s upsurge, the pair turned positive for the week.  

Earlier today, the data published by Germany’s Ifo’s Institue revealed that the headline German Business Climate Index fell to 99.1 in  January from December’s 101.0 reading and fell short of the analysts’ estimate of  100.6. Moreover, the Current Economic Assessment Index edged down to 104.3 and the Expectations Index slumped to 94.2 to confirm the deteriorating sentiment in the euro area’s biggest economy.

However, with the greenback failing to extend yesterday’s rally and reversing its course on Friday, the pair shook off the negative impact of the disappointing Ifo report and posted decisive gains. The US Dollar Index in the early NA session slumped below the 96 mark for the first time in more than a week amid dovish Fed expectations and concerns over the ongoing government shutdown. At the moment, the index is down 0.7% on the day at 95.90.

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