German IFO Indicator Exceeds Expectations – EUR/USD Rises

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The all-important German IFO Business Climate indicator rose from 101.4 to 102.4 points, exceeding expectations of a modest rise to 101.9 points.

EUR USD Rising on IFO December 19 2012

EUR USD Rising on IFO – Click image to enlarge

Apart from the main figure, IFO released two more numbers worth looking at: the Expectations indicator rose from 95.2 to 97.9 points, exceeding expectations for a rise to 96.3 points. The Current Assessment Indicator actually dropped from 108.1 to 1.07.1 points.

EUR/USD, which already began sliding lower from the new highs, is now on the rise again, trading at 1.3245 at the time of writing.

The pair broke the stalemate and began a Santa Rally in the US session. It then continued higher in Asia and reached 1.3256 at the peak, before sliding lower. This positive figure sends it higher.

Update: We are already at 1.3270, another 7 month high.

The next level of resistance is at 1.3290, followed by 1.34, after 1.3170 was broken. EUR/USD is now trading in levels last seen in May. 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.