German IFO Business Climate Jumps – EUR/USD Rises

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The IFO Business Climate Figure rose to 107.4 points. Early expectations stood on a rise from 104.2 to 104.9, but perhaps the real expectations have risen after an excellent number was released by ZEW.EURUSD Rises on Strong German IFO Business Climate figure February 22 2013

EUR/USD traded around 1.3220 before the release, stabilizing after falling to the 1.3170 line yesteday. The pair is now on the rise, but does not challenge the next resistance line of 1.3255, at least not yet.

Also other components came out better than expected: the Current Assessment rose from 104.2 to 107.4 points, above 105 expected. The expectations component advanced from 100.5 to 104.6, significantly above 101.3 points.

IFO is considered Germany’s No. 1 Think Tank, but ZEW releases its figures earlier. The latter printed a huge leap in economic sentiment, increasing the notion that Germany had a one time fall in Q4 2012, and that Q1 2013 will see a nice bounce back to growth.

Support for the pair appears at 1.3170, which capped the pair for a long time. This is followed by 1.3130 and 1.31. On the topside, 1.3255 works as resistance, followed by 1.3290. For more, see the EUR/USD forecast.

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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.