The German IFO Business Survey Overview
The German IFO survey for September is due for release later today at 0800 GMT. The headline IFO Business Climate Index is seen improving to 93.8 versus 92.6 previous.
The Current Assessment sub-index is seen arriving at 89.5 this month, while the IFO Expectations Index – indicating firms’ projections for the next six months – is likely to come in at 98.0 in the reported month vs. 97.5 last.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 3 and 30 pips in deviations up to 3.0 to -4.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.
How could affect EUR/USD?
EUR/USD is consolidating near two-month lows of 1.1645, undermined by broad US dollar strength. The economic worries globally take a toll on the risk sentiment and make the greenback more attractive as a safe-haven,
Ahead of the German IFO Survey, the spot trades modestly flat at 1.1651, with the immediate resistance seen at the pivot point of 1.1676. The round figure of 1.1700 is the next upside barrier en route the 1.1725 5-DMA. To the downside, the buyers will find some support at 1.1633, the daily S1, below which the 1.1600 psychological level could be tested.
Key notes
EUR/USD Outlook: Remains vulnerable to slide further amid fading hopes of global recovery
EUR/USD faces the next support at 1.1630 – UOB
Forex Today: US dollar keeps shining as investors shun risk amid coronavirus, economic woes
About the German 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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