The German IFO Business Climate advanced to 107.7 points, falling short of expectations to rise from 107.6 to 108.4 points. The Current Assessment component also disappointed by dropping from 112 to 11.4, below 112.5 expected. The Expectations component advanced a bit more than expected: from 103.3 to 104.2 points. The headline figure, business climate, disappointed, and this has the strongest impact.
EUR/USD was moving slightly higher before the publication, rising to 1.3513, and is now falling below 1.35. — updates coming —
The pair struggled with the 1.35 line at the wake of the new week. It didn’t really know how to react to the German elections. Draghi’s open door to a new LTRO.
However, the lower chances of an “Octaper”, as telegraphed by FOMC members, limited the gains of the dollar and the fall of EUR/USD.
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