When is the German IFO survey and how it could affect EUR/USD?
|The German IFO Business Survey Overview
The German IFO survey for June is slated for release later today at 0800 GMT. The headline IFO Business Climate Index is expected to drop to 97.3 versus 97.9 previous.
The Current Assessment sub-index is seen weaker at 100.0 this month, while the IFO Expectations Index – indicating firms’ projections for the next six months – is likely to arrive at 94.5 in the reported month vs. 95.3 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 40 pips in deviations up to 2.4 to -3.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.
How could affect EUR/USD?
The spot looks to correct towards the 1.1350 psychological level on downbeat IFO indicators while the EUR/USD pair could extend the bullish momentum above the 1.14 handle on a positive surprise.
According to Haresh Menghani, Analyst at FXStreet, “The pair might now aim towards reclaiming the 1.1400 round figure mark before eventually darting to March monthly swing high, around the 1.1445-50 region. On the flip side, immediate support is now pegged near mid-1.1300s (200-DMA) and is followed by the trend-channel resistance breakpoint, around the 1.1330-25 region, which should now act as a key near-term pivotal point for bullish traders.”
Key Notes
EUR/USD now targets 1.1416 and 1.1570 – Commerzbank
German IFO survey in spotlight amid trade war – Danske Bank
ECB Watch: Draghi’s last shot – Nordea Markets
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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