German Ifo Business Climate Surprises and Rises – EUR/USD
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German Ifo Business Climate Surprises and Rises – EUR/USD

Germany’s No. 1 think tank business climate ticked up to 109.9 points. Early expectations stood on a drop from 109.8 to 1.09.6.

EUR/USD leaps above 1.3165 following the publication – this line capped it yesterday.

The IFO’s Current Assessment for April also surprised by rising to 117.5 from 117.4 instead of sliding to 117 points.  IFO Expectations remained unchanged at 102.7, better than a predicted slide.

EUR/USD went as high as 1.3179 but couldn’t hold on to gains. A false break?

For more on the common currency, see the EUR/USD forecast.

High Spanish and Italian bond yields are weighing on the pair and limiting any rally that comes from positive German data. Also another important institute, ZEW, published an upbeat report earlier in the week.

German strength and peripheral weakness keep the pair balanced.

Spanish 10 year bond yields are ticking up to 5.98%, just shy of the magical 6% line. Italian 10 bond yields are up over 1% to 5.68%. Italy wishes to distance itself from Spain, using a lot of PR more than real actions.

Money continues flowing to Germany. As long as money doesn’t flow out of the zone, the euro seems stable.

Yohay Elam

Yohay Elam

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 a 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.