German businesses are much more confident now. Was the August dip related to Brexit or not? In any case, the headlines business climate indicator jumps to 109.5, much better than expected. Business Expectations are up to 104.5, and the Current Assessment is at 114.7, all well above initial estimations.
EUR/USD hardly budges five pips to the upside, but the good news could reverberate later on. The ZEW indicator was not that upbeat for September, but the IFO data carry more weight.
Germany’s No. 1 Think-Tank, IFO, was expected to show a marginal improvement in business confidence: a rise to 106.3 points in September after 106.2 in August. Business expectations carried expectations for an increase from 100.1 to 100.2, and the Current Assessment measure was projected to advance from 112.8 to 113.
EUR/USD traded around 1.1230 ahead of the publication, well within known ranges.
More: This Can Trigger A Sharp EUR Rally Next Year; How To Position? – SocGen
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