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The German IFO Business Climate fell a bit more than expected to 110.7 points. It was expected to slide from 111.3 to 110.9 points in March. The Current Assessment component carried expectations of ticking higher from 114.4 to 114.6 points and it actually surprised to the upside with 115.2 points.. The “Expectations” component was also predicted to slide from 108.3 to 107.6 points and it slid all the way down to 106.4 points.

EUR-USD was trading at at around 1.3840 towards the release, remaining on higher ground it recovered to. EUR/USD took a small dip in the immediate aftermath of the publication.

The low was 1.3814 but the pair immediately rebounded back to above 1.3830. The shortfall was not that big.

IFO is considered Germany’s No. 1 Think Tank. However, the ZEW institution already published its figures for March and they disappointed with a drop. The publication hit the euro at the time.

In general, EUR/USD is on a recovery path from the blow it got from Janet Yellen. If the pair continues rising towards 1.40, we could hear sounds of disapproval from the ECB.

For more on the euro, see the EURUSD forecast.