Germany: IFO Business Climate Index drops to 84.3 in September vs. 87.1 expected

German IFO sentiment indexes fell at a stronger pace than expected in September.
EUR/USD trades below 0.9700 in the early European session.

Eren Sengezer FXStreet

The headline German IFO Business Climate Index fell to 84.3 in September from 88.5 in August, falling short of the market expectation of 87.1.

The Current Assessment Index dropped to 94.5 from 97.5 and the Expectations Index declined to 75.2 from 80.3. Both of these readings came in below analysts' estimates.

"A big minus on all fronts, almost all sectors of the economy are in the minus, the German economy is facing a recession." IFO economist told Reuters assessing the survey and noted that retail business expectations are at historic lows.

"Price expectations rose again, more than every second company looks to increase prices," the economist added. "Energy-intensive industries are particularly pessimistic about the winter".

Market reaction

The disappointing sentiment data don't seem to be having a significant impact on the shared currency's valuation. As of writing, EUR/USD was down 0.1% on the day at 0.9680.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD struggles for direction around 1.1650

EUR/USD gyrates around the 1.1650 region amid the absence of clear direction and following an earlier drop to the 1.630 area. The pair’s vacillating mood comes in response to the equally irresolute price action in the US Dollar as investors warm up for the release of the NFP Annual Revision and the speech by the Fed’s Warsh at the Jackson Hole Symposium, both events due on Friday.

Gold edges lower below $4,600, all eyes on Jackson Hole Symposium

Gold price (XAU/USD) attracts some sellers to around $4,580 during the Asian trading hours on Friday. The precious metal retreats from a three-month high as in-line US inflation data has reinforced the possibility of further Federal Reserve (Fed) rate hikes. Traders await Fed Chair Kevin Warsh's speech at the Jackson Hole Economic Symposium on Friday for fresh impetus.

Solana, Avalanche, Chainlink see gains as Charles Schwab plans to roll out spot trading products

Charles Schwab plans to expand its crypto trading offering by adding spot trading for Solana (SOL), Avalanche (AVAX) and Chainlink (LINK) to its Schwab Crypto platform, according to a statement on Thursday. The financial services firm announced that clients will be able to buy and sell SOL, AVAX and LINK in their Schwab Crypto accounts in the coming months.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.