EUR/USD remains steady above 1.0900 despite weak German IFO data
- The Euro maintains a moderate bid tone on Monday.
- The German IFO Business Climate backs the view of a softening Eurozone economy.
- The border EUR/USD bullish trend remains intact.
The Euro keeps moving within a narrow range above 1.0900, little moved by the unexpected deterioration of the German IFO Business Climate Index.
German business sentiment deteriorates against expectations
Data released by the German IFO Institute revealed that business sentiment deteriorated in December, following two consecutive improvements. This confirms the view of a weakening Eurozone economic outlook and casts doubt about the hawkish stance conveyed by the European Central Bank last week.
The Business climate index dropped to 86.4 in December from 87.2 last month, against expectations of an improvement to 87.8. The firms surveyed have shown less confidence about the current economic situation, 88.5 from 89.4 last month, with poorer expectations for the next months, 84.3 from 85.1.
EUR/USD Technical analysis
The technical picture remains unchanged, with the pair trimming losses after Friday´s decline. Intraday charts suggest a lack of a clear direction while the broader trend remains positive.
Immediate support lies at 1.0880, and below here, 1.0745. Resistances are 1.1010 and 1.1070.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
