Euro/dollar is back were it was. It slid lower after another disappointing figure: the German Ifo Business Climate, which was expected to slide to 111.2 points, dropped to 108.7 points. This hit EUR/USD, which fell in range and then returned to the same place.
Apart from the headline Business Climate, two additional figures were published: Current Assessment dropped from 121.4 to 118.1, lower than 119.8 that was estimated. The IFO Expectations also fell from 105 to 100.1 points, yet again below 102.8 that was predicted.
The score stood above 114 points for three months, but last month it dropped to 111.2 points. Disappointments are quite rare with this number.
This survey of 7000 analysts and investors tended to beat expectations and to show a more positive picture than other indicators. The ZEW Economic Sentiment figure published yesterday was very disappointing. It fell to a level of -37.6, much worse than estimated. This means strong pessimism. The euro managed to hold on for a while, but later dropped.
EUR/USD traded just under 1.44 before the publication, in the middle of the 1.4350 to 1.4450 range that characterized it throughout most of the week. Further resistance is at 1.4520. Lower support is found at 1.4282.
For more on the pair, see the euro dollar forecast.
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