EUR/USD: Euro remain under question as Germany's IFO disappoints again

The single European currency is showing mild signs of reaction and is trying to approach the level of 1,11 again after the new pressures it received during yesterday

But this effort is again under considerable doubt as the Ifo Institute's just-released data on the business climate and outlook for the German economy disappointed and appears to act as a drag on the European currency.

Disappointment in eurozone manufacturing data weighed on the European currency, sending it into a fifth straight day of losses, with a  reminder that the clouds and the possibility of a recession in  eurozone still remain.

And brought back to the table the big question of how the European currency will manage to continue a dynamic upward channel when the real economy remains vulnerable, several macroeconomic fundamentals continue to disappoint and the continued rise in key interest rates is more likely to complicate things than give a significant boost to the European economy.

Corresponding data on the US economy had a mixed picture which helped the US currency maintain the interest it has gathered in recent days with the dollar index continuing a mild uptrend.

The general picture of the market remains attached to the decisions of the two central banks in the next few days regarding the increase in interest rates But mainly to the conclusions and perspectives that will arise from the statements of the Fed's & Ecb's  Presidents.

In today's agenda highlights is the Ifo Institute announcement on the course of the German economy and later in the day  the Consumer Confidence in US.

The announcement of the IFO  Institute on the business climate and business sentiment of the German economy that  just anounced disappoints something that continues to maintain concerns about the European economy.

While Consumer confidence from the United States is also awaited with interest later in the noon.

Although both elements have increased weight the impact I believe will be temporary in the markets as interest remains elevated and bets limited with focus in the two very important next two days.

My thinking remains the same, I avoid positioning ahead of interest rate decisions and would consider buying  the euro on some sharp new dip with a short rebound target.