German IFO Business Climate Index drops to 87.3 in July vs. 88.0 expected

German IFO Business Climate Index came in at 87.3 in July.
IFO Current Economic Assessment fell to 91.3 this month.
The July German IFO Expectations Index arrived at 83.5, a beat.

Dhwani Mehta FXStreet

The headline German IFO Business Climate Index declined to 87.3 in July versus last month's 88.6 and the consensus forecast of 88.0.

Meanwhile, the Current Economic Assessment arrived at 91.3 points in the reported month, compared with June’s 93.7 and 93.0 anticipated.

The IFO Expectations Index – indicating firms’ projections for the next six months, fell to 83.5 in July from the previous month’s 83.8 reading. The data surpassed market expectations of 83.0.

Market reaction

EUR/USD is paring back gains on the mixed German IFO survey. At the time of writing, the pair is up 0.05% on the day, trading at 1.1065.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO research Institute changed series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.