IFO Business Climate beats with 106.7 – small relief for

Better that expected business confidence in Germany.  The survey was made before the  bombings in  Brussels.  The IFO Business Climate beat with 106.7 instead of 106 expected and 105.7 seen beforehand. The  Expectations  component rose to 100, beating 99.5 expected. The Current Assessment component advanced to 113.8 instead of 112.6 predicted. Also the flash euro-zone PMIs came out above expectations with 51.4 on manufacturing and 54 on services.

EUR/USD is bouncing above 1.12 in the aftermath – a small relief for the pair after the Brussels attack downfall.

Germany’s No. 1 Think Tank was expected to report a small rise in business confidence: from a score of 105.7 to 106 points. The Business Expectations component carried expectations for an advance from 98.8 to 99.5 and the Current Assessment was actually predicted to slide from 112.9 to 112.6 points.

EUR/USD has tumbled down under support at 1.1215 on the sad news from Brussels: two explosions rocked the airport and an additional attack on the Maalbeck metro  station was reported. At least 13 are dead.

At the same time, Markit released its preliminary purchasing managers’ indices for the whole euro-zone, which followed up on the German and French ones published earlier.

EUR/USD was wobbling in range, looking for a new direction and with one eye on events in the Brussels Airport, where two explosions were heard earlier in the morning.

We later have the German ZEW Economic Sentiment publication. A rise from  to 5 points is on the cards.  The ZEW institute usually publishes its assessment before IFO, but this month is different.

More:  EUR: Drivers & Trading Strategy For Next 3 Months – Nomura