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After a few unimpressive months, Germany’s IFO institute reported a better than expected rise in its business climate index. The figure rose to 109.3, exceeding expectations of a rise to 107.9.

EUR/USD, which was already moving to higher ground, is now extending its gains and trading above 1.35.  — updates coming

The current conditions component rose to 112.2 points and the expectations component made it to 106.3. Both are above expectations.

At the same time, Italy released its retail sales number which disappointed with a drop of 0.3% contrary to expectations of a rise of 0.4%.

1.3525 is the high after the break. The euro dropped earlier in the week on rumors that the ECB was seriously considering a negative deposit rate of 0.1%. After a few denials of any imminent action, the common currency recovered.

1.3570 is strong resistance and support is found at 1.34. For more lines and analysis, see the EURUSD forecast.

ECB president Mario Draghi is set to speak soon.