German IFO Badly Disappoints – EUR/USD Falls

11

The headline German IFO Business Climate indicator dropped to 104.4 points. It was expected to slide from 106.7 to 106.4 points. The “Current Assessment” indicator was expected to tick lower from 109.9 to 109.5 but fell to 107.2 points. The Expectations figure dropped from 103.6 to 101.6 instead of sliding only to 103 points.

EUR/USD traded just under the round 1.30 before the release and is now around 1.2960 after already falling to a low of 1.2954. The pair suffered a downfall yesterday following weak German data and lost the 1.30 line. It later recovered.

IFO is Germany’s most important think-tank. The worse business sentiment joins the worse than expected PMIs: manufacturing is now contracting at a faster pace and services fell back from growth to contraction according to Markit.

There is an interesting phenomenon recently: the euro is on the back foot while yields of Spain and Italy are falling. It seems that fear has moved from the debt crisis to German growth prospects.

Support is found at around 1.2960, followed by 1.2880. 1.30 remains resistance. For more, see the EURUSD forecast.

And here is a live chart of the pair:




Get the 5 most predictable currency pairs

About Author

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 the 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.

11 Comments

  1. Pingback: More dollar gains ahead | Forex Crunch

  2. Pingback: German IFO Badly Disappoints – EUR/USD Crashes | Beginning Forex

  3. Pingback: Any USD/JPY move towards 100.00 benefits the EUR | Forex Crunch

  4. Pingback: EUR/USD April 24 – Unsteady After Weak German IFO Business Climate | Forex Crunch

  5. Pingback: Any USD/JPY move towards 100.00 benefits the EUR | Beginning Forex

  6. Pingback: EUR/USD April 25 – Edges Up as Markets Await US Unemployment Claims | Forex Crunch

  7. Pingback: EUR/USD April 26 – Will ECB Lower Rates? | Forex Crunch

  8. Pingback: Any USD/JPY move towards 100.00 benefits the EUR | Forex Crunch | Forex

  9. Pingback: EUR/USD April 29 – Moves Higher As Italy Forms Government | Forex Crunch

  10. Pingback: EUR/USD: Trading the US Non-Farm Employment Change | Forex Crunch

  11. Pingback: EUR/USD Forecast May 20-24 | Forex Crunch