Germany’s IFO Business Climate Index unexpectedly improves to 90.2 in October

Sagar Dua FXStreet

The German IFO Institute Business Climate Index improves to 90.2 in October. The sentiment data was expected to come in lower at 89.8 from 89.9 in September.

However, the IFO Current Assessment Index drops to 88.8 from the previous reading of 89.5.

Expectations Index, an early indicator of current conditions and business expectations for the next six months, accelerates to 91.6 the prior release of 90.4.

Market reaction

Some buying interest is seen in the Euro (EUR) against the US Dollar (USD) after the release of the German IFO data. As of writing, EUR/USD trades 0.1% higher to near 1.1212.

Economic Indicator

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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