When is the German IFO survey and how it could affect EUR/USD?
|The German IFO Business Survey Overview
The German IFO survey for November is lined up for release later today at 0900 GMT. The headline IFO Business Climate Index is expected to rise slightly to 95.0 versus 94.6 previous.
The Current Assessment sub-index is seen as a shade firmer at 98.0 this month, while the IFO Expectations Index – indicating firms’ projections for the next six months – is likely to arrive at 92.5 in the reported month vs. 91.5 last.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 3 and 40 pips in deviations up to 2.4 to -3.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.
How could affect EUR/USD?
According to Haresh Menghani, Analyst at FXStreet, “A sustained break below the key 1.10 handle will reaffirm the bearish bias and set the stage for a slide towards the 1.0955-50 intermediate support before the pair eventually drops to the 1.0900 round-figure mark.”
“On the flip side, 1.1055-60 area now seems to act as an immediate resistance, which is closely followed by 100-day SMA, currently near the 1.1085 region, and the 1.1100 handle. Sustained break through the mentioned barriers might now be seen as a key trigger for bullish traders and pave the way for a further near-term appreciating move. The pair then might aim towards testing the 1.1170-80 supply zone (double-top resistance) en-route the 1.1200 round figure mark,” Haresh adds.
Key Notes
Trade talks, German ifo amongst market movers today – Danske Bank
EUR Futures: scope for extra losses
Forex Today: Risk sentiment buoyed by trade optimism, focus on German IFO
About the German IFO Business Climate
This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).
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