German IFO Business Climate Jumps – EUR/USD Rises

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.

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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