The German Ifo Business Climate dropped to 107.4 points. It was expected to advance from 107.7 to 108.2 points in October. IFO Expectations were expected to rise from 104.2 to 104.5 points, but fell to 103.6. The IFO Current Assessment component was predicted to tick up from 111.4 to 111.6 points but slid to 111.3 points. IFO is Germany’s No. 1 think tank. The results are a small disappointment.
EUR/USD was trading on high ground at around 1.3825 before the release and is now slightly lower.
The ZEW economic sentiment was already released, and it showed a stronger rise than expected. Markit’s purchasing managers’ indicators for Germany disappointed. Markets are looking for the euro’s new direction after the recent rise.
In addition, the euro-zone released a few more indicators: M3 Money Supply disappointed by slowing down to 2.2%. It was expected to stay at a growth rate of 2.3%. Private loans dropped by 1.9% as expected, after a drop of 2% last month. This slide could cause worries in the ECB.
Italian retail sales remained flat month on month and advanced by 0.2% year on year.
EUR/USD enjoys levels last seen in November 2011. The pair made the big breakout on top of the weak US Non-Farm Payrolls. The new high for this cycle is 1.3832. Resistance appears at 1.3870, 1.3960 and then 1.40.
For more, see the EUR USD forecast.
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